News: Microelectronics
19 March 2026
Wolfspeed announces subscriptions for $379m of convertible notes and $96.9m of common stock and pre-funded warrants
Wolfspeed Inc of Durham, NC, USA — which makes silicon carbide (SiC) materials and power semiconductor devices — has entered into separate, privately negotiated subscription agreements with investors pursuant to which it will place (i) $379m of its 3.5% convertible 1.5 lien senior secured notes due 2031 and (ii) 3,250,030 shares of common stock at a purchase price of $18.458 per share, and pre-funded warrants to purchase up to 2,000,000 shares of common stock at a price of $18.448 per pre-funded warrant. The issuance and sale of the notes, shares and fre-Funded warrants is expected to settle on 26 March, subject to customary closing conditions. Funds managed by new and existing investors participated in these private placements.
Wolfspeed expects gross proceeds of $379m the notes and about $96.9m from the shares and pre-funded warrants, totaling from the about $475.9m private placements, before deducting placement agent and financial advisor fees and other expenses.
Consistent with its previously communicated strategy to enhance its capital structure, Wolfspeed intends to use the gross proceeds to redeem about $475.9m of the outstanding senior notes in order to reduce higher-cost debt instruments, lower annual interest expense, and reduce total debt. These efforts aim to strengthen the balance sheet, supporting initiatives to diversify key end-markets and capture opportunities in emerging high-voltage applications including AI data centers, industrial and energy, and aerospace & defense markets.
The notes will be issued pursuant to an indenture, dated 26 March, between Wolfspeed, Wolfspeed Texas LLC as guarantor and US Bank Trust Company, National Association, as trustee and collateral agent.
The notes will bear cash interest at a rate of 3.5% per year. Interest will be payable semi-annually in arrears on 15 March and 15 September of each year, commencing on 15 September 2026. The notes will mature on 15 March 2031, unless earlier repurchased, redeemed or converted.
Noteholders will have the right to convert their notes at any time at their election (subject to certain limitations) until the close of business on the second scheduled trading day immediately before the maturity date. The initial conversion rate for the notes will be 49.6623 shares of Wolfspeed’s common stock per $1000 principal amount of notes (equivalent to an initial conversion price of about $20.14 per share of Wolfspeed’s common stock), and will be subject to customary anti-dilution adjustments. Conversions of the notes will be settled in cash, shares of the common stock or a combination thereof, at Wolfspeed’s election. The initial conversion price represents a conversion premium of about 20.0% over the last reported sale price of $16.78 per share of Wolfspeed’s common stock on the New York Stock Exchange on 18 March.
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