DURHAM – Wolfspeed up its offering to investors more than $200 million to $1.5 billion on Thursday after initially announcing a $1.3 million offering Tuesday and then announcing a $500 million investment deal with automobile supplier BorgWarner.
Wolfspeed (NYSE: WOLF) also increased its option for more notes to $225 million.
Notes will have an interest rate of 1.875% per year, Wolfspeed said.
The company is in the process of building a mammoth semiconductor plant in Siler City, N.C.
“The sale of the Notes to the initial purchasers is expected to settle on November 21, 2022, subject to the satisfaction of customary closing conditions, and is expected to result in approximately $1,497.5 million in net proceeds to Wolfspeed (or approximately $1,718.6 million if the initial purchasers exercise their option to purchase additional Notes in full) after deducting the initial purchasers’ discount and estimated offering expenses payable by Wolfspeed,” the company said.
Of the new capital, Wolfspeed said it would use nearly $240 million for “capped call transitions” intended in part to limit stock dilution.
“Wolfspeed intends to use the remainder of the net proceeds from the Offering for general corporate purposes. If the initial purchasers exercise their option to purchase additional Notes, then Wolfspeed intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transaction,” the company added.