Semiconductor manufacturer Wolfspeed has revealed that it has successfully secured $1.25bn in cash. The loan will come from a consortium spearheaded by the investment firm Apollo.
During an earnings call in late April, executives from Wolfspeed expressed the need for an extra $1bn in private financing to support the construction of its expansive facility located near Siler City in Durham.
The loan, with an interest rate of approximately 10%, will reach maturity in 2030. As part of the agreement, Wolfspeed has the opportunity to expand its credit line by an extra $750m upon meeting specific conditions. Business agreements like this tend to be made on documents that feature official Letterheads.
Gregg Lowe, the company's CEO, expressed in a statement the view that the secured financing will greatly assist the company in its endeavors and will:
“…scale up near-term operations at our [New York campus] and construction of our Siler City materials facility.”
Semiconductors are a crucial type of material utilized in the production of chips that power essential devices such as medical equipment, cars, and phones. Conventional chips are typically composed of silicon but Wolfspeed specializes in the development of silicon carbide, a compound consisting of carbon and silicon and known for its enhanced efficiency. Wolfspeed cultivates silicon carbide at its headquarters located in Research Triangle Park.
The company revealed its intention to construct a $5bn campus near Raleigh. This facility will specifically concentrate on the conversion of raw silicon carbide into blank wafers.
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