Wolfspeed announces prepackaged debt restructuring; to cut debt ~$4.6B, dilute equity to 3-5%

WOLFSPEED, INC.

• Debt restructuring to reduce total debt by ~70% (~$4.6B) and annual interest expense by ~60%.
• Existing equity holders to receive 3.0% or 5.0% of new common stock; current equity interests cancelled.
• Senior Secured noteholders get new notes + $250M redemption at 109.875%; Convertible noteholders get $301.13M rights offering, $296M takeback notes, and 56.3% of new equity.
• Renesas to receive $204M convertible notes, 38.7% of new common stock, and warrants for 5% of equity; contingent consideration if regulatory approvals not obtained.
• Company expects to file Chapter 11 by July 1, 2025, and emerge by end of Q3 2025; operations continue as usual in ordinary course.