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Semiconductor maker Wolfspeed Inc. (NYSE:WOLF) is receiving as much as $2 billion in debt financing for its U.S. expansion from a group of lenders led by private equity firm Apollo Global (APO).
The financing includes $1.25 billion in cash immediately available to Wolfspeed (WOLF), with another $750 million that can be drawn later, according to a Bloomberg report on Sunday, which cited a statement. News of the financing was first reported by The Information.
The debt financing comes after Wolfspeed’s (WOLF) Chief Financial Officer said during the company’s Q3 earnings conference call in late April that the company was seeking $1 billion of additional non-government financing by the end of the calendar year to support and approximate $2 billion in capital expenditures in fiscal 2024.
Wolfspeed (WOLF) is largely focus on manufacturing silicon-carb chips, which are used in electric vehicles, power supplies and for solar applications.
The financing is structured as 7-year secured notes that carry a coupon of 9.875% that can be paid back after three years, according to Bloomberg.