Wolfspeed Shares Jump After $1.5 Billion Defense Loan Commitment

Wolfspeed shares surged in after-hours trading Wednesday after the company announced a conditional commitment for up to $1.5 billion in 30-year financing from the U.S. Department of War’s Office of Strategic Capital.

WOLF was quoted at $37.60, up 19.86%, at 7:59 p.m. ET (23:59 UTC) Oct. 7 in one market-data snapshot. The stock closed the regular session at $31.37.

The proposed financing would use a senior secured, delayed-draw facility, allowing funds to be released in tranches. Wolfspeed plans to use the money to expand U.S. production of silicon carbide materials, wide-bandgap power devices, gallium nitride epitaxy, GaN-on-SiC radio-frequency technology and radiation-hardening capabilities.

The company said the manufacturing expansion would support defense, communications and electronic-warfare applications. Its domestic footprint includes facilities in North Carolina, New York and Arkansas.

Wolfspeed would issue warrants based on the volume-weighted average price covering up to 7.5% of its fully diluted equity as financing tranches are funded. The proposal remains subject to due diligence, definitive agreements, government approvals, appropriations and third-party consents.