Wolfspeed secures $1.5 billion conditional loan commitment from US defense department
WOLF•Wolfspeed said it received a conditional commitment for up to $1.5 billion from the US Department of Defense to expand domestic silicon carbide production. The proposed 30-year financing is subject to approvals and other conditions, and would require Wolfspeed to issue warrants for up to 7.5% of its fully diluted equity.
1. Conditional financing
Wolfspeed said the Department of Defense’s Office of Strategic Capital made a conditional 30-year loan commitment for up to $1.5 billion to support expanded domestic production of silicon carbide materials and power devices. The company said the commitment reflects efforts to optimize its capital structure and improve its financial foundation.
2. Planned uses and terms
Wolfspeed plans to use the financing to upgrade gallium nitride technology for next-generation communications infrastructure and electronic warfare systems, and to develop radiation-hardening capabilities. Funding remains subject to due diligence, definitive agreements, government approvals and other conditions. Under the proposed terms, Wolfspeed would issue warrants allowing the department to purchase up to 7.5% of the company’s fully diluted equity.
