Wolfspeed is taking proactive measures to solidify its financial foundation and pave the way for scaled profit growth

Major creditors strongly support Wolfspeed's proposed pre packaged restructuring plan

The company has a cash reserve of approximately 1.3 billion US dollars in the third quarter of fiscal year 2025, which can provide sufficient short-term liquidity support for customer and supplier payments

Transaction Summary - Expected Returns:

·The total debt has decreased by about 70%; Annual cash interest expenses reduced by approximately 60%

·Existing equity holders will receive a 3% or 5% share of the new company's common stock

·The company expects to quickly complete the restructuring process by the end of the third quarter of calendar year 2025

·After the restructuring is completed, Wolfspeed's operating funds are expected to be fully guaranteed by endogenous cash flow

·The management focuses on profitability and long-term growth, with the consulting team leading the restructuring process

DURHAM, N.C., June 22, 2025 (Eastern Time) -- Wolfspeed Corporation (NYSE: WOLF) (hereinafter referred to as "Wolfspeed" or "the Company") announced today that it has reached a Restructuring Support Agreement (RSA) with its major creditors to proactively optimize its capital structure. The participating creditors include (i) holders of over 97% of the senior secured notes, (ii) a wholly-owned subsidiary of Renesas Electronics Corporation in the United States, and (iii) a group of creditors holding over 67% of the outstanding convertible bonds. The proposed transaction under the Restructuring Support Agreement is expected to reduce the company's total debt by approximately 70%, equivalent to a reduction of approximately $4.6 billion in liabilities, and an annual cash interest expense reduction of approximately 60%.

Through this forward-looking initiative, the company expects to more effectively advance its long-term growth strategy and accelerate its profitability process. This move marks an efficient agreement between the company and its major creditors in the capital restructuring negotiations, which will help Wolfspeed consolidate its leading position in the silicon carbide (SiC) industry.

Robert Feurle, CEO of Wolfspeed, stated, "After evaluating various options to optimize our balance sheet and capital structure, we are confident that this strategic move will position Wolfspeed in the most advantageous position for future development. ”Wolfspeed has strong core advantages and enormous development potential. As a global leader in silicon carbide technology, we have built an excellent fully automated 200mm dedicated production system and continue to provide cutting-edge products to our customers. Strengthening our financial foundation will provide us with strong support, enabling us to focus more on promoting rapid growth and innovation in the vertical field of electrification, which requires extremely high product quality, durability, and efficiency. ”

Feurle continued, "In the process of moving towards the future, we sincerely appreciate the trust and support of our major creditors. They share our development vision with us and are confident in our growth prospects. At the same time, I would like to express special thanks to our talented team for their resilience and dedication, as well as the long-term support of our customers and partners

Detailed information about the Restructuring Support Agreement

The main terms of the Restructuring Support Agreement are summarized as follows:

·According to the terms of the Restructuring Support Agreement (RSA), the company will receive $275 million in new financing in the form of second lien convertible notes, fully committed to support by some existing convertible bondholders.

·According to the terms of the Restructuring Support Agreement (RSA), the company will repay $250 million in senior secured notes at a premium of 109.875%. The agreement also includes revised provisions to reduce subsequent cash interest expenses and minimum liquidity requirements.

·According to the Restructuring Support Agreement (RSA), the company will exchange $5.2 billion of convertible bonds and Renesas loan debt held by specific creditors for $500 million of notes and 95% of the initial equity of newly issued common stock (this ratio may be adjusted due to subsequent equity financing anti dilution clauses); If regulatory approval is not obtained within the agreed deadline, Renesas loan creditors have the right to receive additional cash compensation.

·According to the above transaction, the existing equity will be cancelled, and existing shareholders will receive a proportionate share of 3% or 5% of the newly issued common stock, which will be diluted by other equity issuances and may decrease due to specific events.

·All other unsecured creditors are expected to receive payment in the normal course of business.

In order to execute the transactions stipulated in the Restructuring Support Agreement (RSA), the company plans to initiate the creditor voting process for the pre packaged restructuring plan in the near future and proactively submit a voluntary restructuring application in accordance with Chapter 11 of the US Bankruptcy Code. Wolfspeed is expected to efficiently advance the restructuring process and plans to complete judicial restructuring and resume normal operations by the end of the third quarter of the calendar year 2025.

Wolfspeed will maintain normal operations during the bankruptcy reorganization period and continue to supply leading silicon carbide materials and devices to customers. According to the company's plan, during the restructuring period, an "emergency ruling motion" will be passed to continue paying suppliers for goods and services delivered in normal operation. Suppliers will not be affected by the restructuring process. Wolfspeed also plans to submit a regular motion to the bankruptcy court to support operational activities within its normal business scope, including maintaining the ongoing implementation of employee compensation and benefits plans.

More details regarding the Restructuring Support Agreement (RSA) will be disclosed in the company's upcoming Form 8-K submission to the US Securities and Exchange Commission (SEC). The issuance of relevant securities will be strictly based on the final statutory issuance documents and will only be conducted with reference to the relevant exemptions under the revised U.S. Securities Act of 1933. This press release does not constitute any offer to sell or purchase securities. This press release does not constitute a solicitation of voting rights for the bankruptcy reorganization plan.

This is reported by Top Components, a leading supplier of electronic components in the semiconductor industry

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Media Relations

Name: John Chen

Email: salesdept@topcomponents.ru