Wolfspeed Inc. (NYSE: WOLF) announced it entered into subscription agreements on March 19, 2026, to raise approximately $475.9 million through private placements of convertible notes and equity securities.

The semiconductor company will issue $379 million in 3.5% convertible senior secured notes due 2031 and sell 3.25 million shares of common stock at $18.458 per share, along with pre-funded warrants to purchase up to 2 million additional shares at $18.448 per warrant. The transactions are expected to settle March 26, 2026.

The company plans to use the gross proceeds to redeem approximately $475.9 million of existing senior notes, which it states will reduce higher-cost debt and lower annual interest expenses. The convertible notes will bear 3.5% annual interest, payable semi-annually, and mature March 15, 2031.

The notes will be convertible at an initial rate of 49.6623 shares per $1,000 principal amount, equivalent to a conversion price of approximately $20.14 per share. This represents a 20% premium over Wolfspeed's March 18, 2026 closing price of $16.78 per share on the New York Stock Exchange.

Wolfspeed can redeem the notes for cash starting March 20, 2028, subject to certain stock price conditions. The notes will be secured by substantially all company assets and guaranteed by Wolfspeed Texas LLC.

Goldman Sachs & Co. LLC, Wells Fargo Securities LLC and William Blair & Company L.L.C. served as placement agents for the offering. J. Wood Capital Advisors LLC also acted as financial advisor.

The securities have not been registered under the Securities Act of 1933 and were sold in private placements to new and existing investors.