Apollo Leads $2 Billion Private Financing for Semiconductor Firm Wolfspeed
- Financing will support Wolfspeed’s capacity expansion
- Seven-year notes provide $1.25 billion now, $750 million later
President Biden visited the Wolfspeed facilities in Durham, North Carolina, on March 28.
Photographer: Jim Watson/AFP/Getty ImagesThis article is for subscribers only.
A group of lenders led by Apollo Global Management Inc. is providing as much as $2 billion to Wolfspeed Inc. to support the semiconductor maker’s expansion in the US, according to a statement seen by Bloomberg.
The financing makes $1.25 billion of cash immediately available to the company, while another $750 million can be drawn later. It was structured as seven-year secured notes that carry a coupon of 9.875% and can be paid back after three years.