Wolfspeed completes financial restructuring
SiC specialist Wolfspeed has successfully completed its financial restructuring process and emerged from Chapter 11 protection. The plan going forward is to leverage its installed 200mm capacity to drive sustainable growth.
Through the restructuring process, Wolfspeed has reduced its total debt by approximately 70%, with maturities extended to 2030, and lowered its annual cash interest expense by roughly 60%.
In addition, the company says that it believes it maintains ample liquidity to continue supplying customers with its silicon carbide solutions. With a self-funded business plan supported by free cash flow generation, Wolfspeed says that it is "well positioned to leverage its vertically-integrated 200mm manufacturing footprint—underpinned by a secure and scalable US-based supply chain—to drive sustainable growth."
“Wolfspeed has emerged from its expedited restructuring process, marking the beginning of a new era, which we are entering with new energy and a renewed commitment to the growth mindset and entrepreneurial spirit that have powered Wolfspeed since its inception,” says Robert Feurle, Chief Executive Officer of Wolfspeed, in a press release. “As we enter this new era, we do so with much improved financial stability, a scaled, greenfield and vertically integrated 200mm facility footprint, and our large capital deployment behind us.“
The CEO continues to say that the company is well-positioned to capture rising demand in end markets, such as AI, EVs, industrial and energy – which are rapidly growing and recognising silicon carbide’s potential.