Wolfspeed raises $2 billion in private financing from Apollo, others – Bloomberg

A semiconductor firm Wolfspeed (NYSE:) has raised $2 billion from a group of private lenders, including Apollo Global Management (NYSE:), according to Bloomberg.

Lenders provided the company with $1.25B while $750 million is available for later use. The deal was reportedly structured as seven-year secured notes that carry a coupon of 9.875% and can be paid back after three years.

Bloomberg reported that Wolfspeed preferred to go this route to gain access to cash as private lenders could provide additional financing if needed. Another benefit of such a deal is that a limited number of parties have access to Wolfspeed’s IP.

Generated proceeds are expected to support the expansion of Wolfspeed’s production factories.