Semiconductor manufacturer Wolfspeed Inc has secured as much as $2 billion in financing from a group of lenders led by Apollo Global Management to fund the company’s expansion in the US, according to a report by Bloomberg.
Semiconductor manufacturer Wolfspeed Inc has secured as much as $2 billion in financing from a group of lenders led by Apollo Global Management to fund the company’s expansion in the US, according to a report by Bloomberg.
Under the terms of the financing facility, which has been structured as seven-year secured notes that carry a coupon of 9.87% and can be paid back after three years, Wolfspeed will have access to $1.25 billion of cash immediately, with an additional $750 million able to be drawn at a later date.
The report cites unnamed sources with knowledge of the matter as revealing that Wolfspeed chose to tap the private credit market for funding to limit the number of parties that would have access to its intellectual property, and because of the lenders’ ability to provide the additional tranche of financing.
