DURHAM –Cree Inc. says net proceeds from its offering this week of $500 million in Convertible Senior Notes (Notes) will go to repay its borrowings under its revolving credit facility and to fund expansion of its Wolfspeed semiconductors.

Cree’s Wolfspeed products include SiC materials, power-switching devices and radio frequency devices targeted for applications such as electric vehicles, fast charging, inverters, power supplies, telecom and military and aerospace. The company also makes LED lighting products.

Cree said in a press release that it expects to grant the initial purchasers of the Notes an option to purchase, for settlement within a 13-day period from, and including, the date on which the Notes are first issued, up to an additional $75 million aggregate principal amount of the Notes.

The unsecured Notes will be convertible into cash, shares of Cree’s common stock, or a combination.

The interest rate, initial conversion rate, repurchase or redemption rights will be determined upon pricing of the offering by negotiations between Cree and purchasers of the notes.