Wolfspeed completes Renesas equity issuance following CFIUS approval
Wolfspeed has received clearance from the Committee on Foreign Investment in the United States (CFIUS) for its equity issuance to Renesas Electronics, completing a key element of the company’s court-approved restructuring process.
Renesas, which was a creditor to Wolfspeed prior to its Chapter 11 filing, converted an unsecured loan into equity and secured convertible debt under the restructuring plan. The transaction gives Renesas a significant equity stake in Wolfspeed and the right to appoint one member to the board of directors. Renesas has appointed its vice president of finance, Aris Bolisay, to the board.
The equity issuance required a review by CFIUS because of foreign ownership and board representation in a US-based semiconductor manufacturer. With approval now granted, shares previously held in escrow will be released to Renesas.
In parallel, Wolfspeed will distribute the remaining 2% allocation of common stock to its legacy pre-petition equity holders. This distribution represents the final tranche of the 5% equity recovery granted to shareholders under the court-approved restructuring plan. The initial 3% was distributed when the plan became effective in September.
Following the transactions, Wolfspeed expects to have approximately 45.1 million common shares outstanding. The figure includes shares issued to Renesas, the final shareholder distribution, and shares issued from earlier conversions of convertible debt.
“CFIUS clearance represents the final milestone in the execution of our prepackaged restructuring,” said Wolfspeed CEO, Robert Feurle, in a press release. “With this phase behind us, Wolfspeed is fully focused on broadening and diversifying our customer base, expanding our leadership in SiC power devices, and scaling with discipline across our global manufacturing footprint. We believe these actions position Wolfspeed to capture long-term growth while operating with sharper commercial execution and capital efficiency.”
