Wolfspeed files Chapter 11; debt down ~70% ($4.6B), equity cancelled, holders get 3-5% of new common

WOLFSPEED, INC.

• Prepackaged Chapter 11 filed to reduce total debt by ~70% (~$4.6B) and annual interest expense by ~60%.
• Existing common stock cancelled; current equity holders receive pro rata 3-5% of new common equity, subject to dilution.
• Company has ~$1.3B cash as of 3QFY25; expects to pay vendors in ordinary course and emerge by end of 3QCY25.
• RSA backed by >97% of senior secured noteholders, >67% of convertible debtholders, and Renesas Electronics America.
• Operations continue as usual; customers and vendors served normally during the restructuring process.