Apollo Backs Wolfspeed with $2B for Expansion, Boosting US Silicon Carbide Supply
Portfolio Pulse from Anusuya Lahiri
Apollo Global Management (APO) leads a group of lenders providing up to $2 billion to Wolfspeed (WOLF) for its expansion in the US. The financing includes $1.25 billion in immediate cash and $750 million for future drawing. Proceeds will support the expansion of Wolfspeed's production facilities to supply silicon carbide wafers to automakers.
June 26, 2023 | 11:34 am
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Apollo Global Management leads a $2 billion financing deal for Wolfspeed's US expansion, showcasing its expertise in arranging large private financings.
Apollo's involvement in the financing deal demonstrates its ability to arrange large private financings for publicly-traded companies. This could attract more clients and boost its reputation in the industry, potentially leading to a positive short-term impact on its stock price.
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IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Wolfspeed receives up to $2 billion in financing led by Apollo Global Management for its US expansion, boosting its silicon carbide supply for automakers.
The financing deal provides Wolfspeed with significant capital to expand its production facilities and increase its silicon carbide supply for automakers. This expansion could lead to increased revenues and market share, positively impacting its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100