Wolfspeed Secures Landmark Debt Overhaul to Slash Liabilities

Wolfspeed is poised for a dramatic financial transformation after reaching a pivotal agreement to restructure its debt. The semiconductor manufacturer’s deal is designed to liberate the company from its substantial financial obligations through comprehensive creditor support.

Overwhelming Creditor Backing for Restructuring Plan

A resounding majority of the company’s senior secured noteholders, representing over 97%, have endorsed the proposed financial reorganization. This widespread approval underscores the confidence in the strategic plan to stabilize the silicon carbide chip producer’s balance sheet. The entire process is targeted for completion by the end of the third quarter of 2025. The voting deadline for creditors to submit their decisions on the reorganization plan concludes today.

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Drastic Reduction in Debt and Interest Burden

The core objective of this restructuring is a profound reduction of the company’s liabilities. The terms outline a significant deleveraging that will reshape its financial profile:

• Elimination of approximately $4.6 billion in debt, equating to nearly 70% of its total outstanding obligations
• An estimated 60% decrease in annual interest expense
• Substantial financial relief intended to enhance operational flexibility

New Financing to Support Operations

To ensure liquidity and fund its ongoing strategy throughout this period, Wolfspeed has arranged $275 million in new financing. This capital infusion will be provided through the issuance of junior lien convertible notes, which are being fully backstopped by existing holders of its convertible notes. This commitment signals strong internal belief in the company’s recovery roadmap. Throughout the restructuring proceedings, Wolfspeed intends to maintain normal business operations without disruption to its supply chain partners or employees.