DURHAM – Wolfspeed is looking to raise as much as $1.5 billion in capital through the sale of convertible notes, the Durham-based company announced early Wednesday.

Wolfspeed (NYSE: WOLF) said the funds would be used for general corporate purposes and to fund “the cost of entering into the capped call transactions,” which are designed to protect against dilution of Wolfspeed stock.

Minutes after the announcement, Wolfspeed also disclosed a $500 million investment from global auto supplier BorgWarner.

Wolfspeed lands $500M investment from global automotive giant BorgWarner

The notes will come due in 2029 but have not yet been priced, the company explained. The initial amount offered will be $1.3 billion with another $200 million available later to purchasers, according to the announcement.

Wolfspeed is in the process of building a huge semiconductor plant in Chatham County, N.C.

North Carolina pays $1B price to land Wolfspeed plant over offer from New York