Categories: TechnologyWorld

Apollo Global leads debt investment in chipmaker Wolfspeed, media report

A group of investors led by Apollo Global Management is making a debt investment between $1 billion to $2 billion in chipmaker Wolfspeed to support its expansion in the U.S., media outlets reported on Sunday.

The financing would make $1.25 billion of cash available immediately to Wolfspeed, while another $750 million could be drawn later, Bloomberg News reported.

The report added it was structured as seven-year secured notes carrying a coupon of 9.875% and can be paid back after three years.

The Information reported the deal could be announced in the coming days.

In September last year, Wolfspeed said it will build a multi-billion dollar factory in Chatham County, North Carolina, to make the raw materials used for chips that power things like electric vehicles as demand surges.

Apollo Global Management and Wolfspeed did not immediately respond to requests for comment.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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