Wolfspeed Inc (NYSE:WOLF) shares are trading higher Monday after the company received an investment of a $1.25 billion.
What Happened: Wolfspeed has received $1.25 billion in secured note financing from an investment group led by Apollo Global Management Inc (NYSE:APO). The financing includes an accordion feature for up to an additional $75 million.
The investment is expected to help support the company’s previously announced U.S. expansion efforts as Wolfspeed continues to move toward its goal of achieving its $6.5 billion global capacity expansion plan.
“The group’s commitment to Wolfspeed further validates the importance of silicon carbide to the global energy transition,” said Gregg Lowe, president and CEO of Wolfspeed.
“This important step in our financing provides significant capital to scale up near-term operations at our Mohawk Valley Fab and construction of our Siler City materials facility to help us capture the growing silicon carbide market opportunity.”
The 9.875% notes will mature in 2030. Wolfspeed has the option to prepay based on the terms of the indenture governing the notes.
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WOLF Price Action: Wolfspeed shares were up 4.33% at $51.59 at the time of publication, according to Benzinga Pro.
Photo: Lorenzo Cafaro from Pixabay.
