Wolfspeed jumps on conditional $1.5 billion Pentagon loan commitment
-1.12% to $31.02 from $31.37
What moved WOLF
- Wolfspeed said it received a conditional loan commitment letter for up to $1.5 billion from the U.S. Department of War’s Office of Strategic Capital, structured as a 30-year senior secured, delayed-draw term loan.
- The financing is intended to support domestic production of silicon carbide materials and wide-bandgap power devices for national security-related uses.
- Under the proposed terms, the Pentagon would receive warrants for up to 7.5% of the company.
- Wolfspeed’s CFO said the commitment is subject to further diligence, negotiation of definitive agreements, and other financial and legal conditions before it is finalized.
Sources: Wolfspeed SEC 8-K filing · CNBC