Wolfspeed signs conditional $1.5B U.S. Department of War loan commitment; DoW warrants would cover 7.5% of equity

WOLFSPEED, INC.

• Wolfspeed entered a conditional commitment letter with the U.S. Department of War's Office of Strategic Capital for a senior secured delayed draw term loan of up to $1.5 billion.
• Four tranches: $600M initial, then $900M in $200M-$400M draws. Initial proceeds refinance the first lien notes due 2030; later draws fund domestic SiC and GaN production and GaN-on-SiC RF epitaxy.
• The Facility would have a 30-year maturity, 36-month commitment period and interest at the Treasury rate plus a provisionally set 1.25%-1.75% risk premium; first five years are interest-only.
• Conditions include Congressional authorization and appropriations, OMB concurrence, equitizing most outstanding convertible notes, and $750M of Qualifying Sources raised after June 28, 2026.
• DoW would get warrants for 5% plus 2.5% of fully diluted equity at VWAP-based prices with a 10-year term; OSC gets a non-voting board observer and the CEO must be a permitted-jurisdiction national.