Wolfspeed announces conditional 30-year, $1.5 billion loan commitment from US Department of War
WOLF•Wolfspeed announced a conditional 30-year, $1.5 billion loan commitment from the US Department of War to advance the domestic wide bandgap supply chain. The financing would support gallium nitride epitaxy upgrades and radiation-hardening capabilities; Wolfspeed would be required to issue warrants for up to 7.5% of fully diluted equity to the department.
1. Loan commitment
Wolfspeed announced a conditional 30-year, $1.5 billion loan commitment from the US Department of War to advance the domestic wide bandgap supply chain. The financing would support upgrades to gallium nitride epitaxy and development of radiation-hardening capabilities.
2. Warrant terms
Wolfspeed said it would be required to issue VWAP-based warrants to the Department of War for up to 7.5% of fully diluted equity. It also said it would issue VWAP-based warrants to Dow for up to 7.5% of fully diluted equity.
