Wolfspeed private placement of convertible notes, stock and pre-funded warrants

Davis Polk represented the placement agents in connection with the private placement by Wolfspeed, Inc. of $379 million aggregate principal amount of its 3.5% convertible 1.5 lien senior secured notes due 2031 and $96.9 million of common stock and, in lieu of common stock, pre-funded warrants to purchase shares of common stock. The proceeds of the private placement were used to redeem certain of the company’s outstanding senior notes.

Wolfspeed, Inc. is an innovator of wide bandgap semiconductors, focused on silicon carbide materials and devices for power applications. Its product families include power devices and silicon carbide and gallium nitride (GaN) materials. Its products are targeted for various applications such as electric vehicles, fast charging and renewable energy and storage.

The Davis Polk capital markets team included partner Derek Dostal and counsel Michael Stromquist. The equity derivatives team included partner Mark M. Mendez and associates Alexander S. Pettingell and Chanique C. Vassell. All members of the Davis Polk team are based in the New York office.