The chipmaker Wolfspeed will receive a debt investment of between $1 billion and $2 billion from a group of investors led by Apollo Global Management to boost its growth in the United States, according to media reports on Sunday.
With the funding, Wolfspeed would have access to $1.25 billion in cash right once and an additional $750 million afterwards.
According to the study, it was set up as seven-year secured notes with a 9.875% coupon that were repayable after three years.
The Information claimed that the agreement might be revealed soon.
In response to a boom in demand, Wolfspeed announced in September of last year that it would erect a multi-billion dollar factory in Chatham County, North Carolina, to produce the raw ingredients needed for chips that power things like electric vehicles.
Requests for comment from Wolfspeed and Apollo Global Management were not immediately fulfilled.
Marc Rowan, Josh Harris, and Leon Black created Apollo Global Management in 1990. It is also known as Apollo Asset Management and invests in real estate, private equity, and credit. This American private equity firm helps firms grow and become more resilient by offering creative capital solutions and support. Athene, its retirement services division, offers a variety of retirement savings solutions to assist customers in achieving financial stability.
With an emphasis on silicon carbide and gallium nitride materials and devices for power and radio frequency applications such transportation, power supply, power inverters, and wireless systems, Wolfspeed Inc. is a solution developer and producer of wide-bandgap semiconductors.
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