Wolfspeed announced it has entered into subscription agreements with new and existing investors to raise approximately $475.9 million through a combination of convertible notes, common stock, and pre-funded warrants, as part of a broader effort to strengthen its balance sheet and reduce higher-cost debt.
The financing includes $379 million in 3.5% convertible senior secured notes due 2031, along with approximately $96.9 million from the sale of common stock and pre-funded warrants. The company issued 3,250,030 shares of common stock at $18.458 per share, representing a 10% premium to the March 18, 2026, closing price, and also offered warrants to purchase up to 2,000,000 additional shares.
The company intends to use the proceeds to redeem approximately $475.9 million of its outstanding senior notes. This move is designed to reduce higher-interest debt, lower annual interest expenses, and improve the overall capital structure.
The convertible notes carry a 3.5% annual interest rate and mature on March 15, 2031. They are convertible into Wolfspeed common stock at an initial conversion price of approximately $20.14 per share, representing a 20% premium to the stock’s last reported price prior to the announcement. The notes are secured and rank senior to subordinated debt, though they remain effectively subordinated to certain existing secured obligations.
Wolfspeed stated that strengthening its balance sheet will support its strategy to expand across key end markets, including AI data centers, industrial and energy applications, and aerospace and defense. The company continues to focus on silicon carbide technology as a core enabler of next-generation high-voltage and high-efficiency systems.
Wolfspeed expects the transaction to close on March 26, 2026, subject to customary conditions.
