Pentagon offers Wolfspeed up to $1.5 billion conditional loan commitment
The Pentagon's Office of Strategic Capital has offered chipmaker Wolfspeed a conditional loan commitment of up to $1.5 billion in exchange for equity warrants, sending its shares sharply higher.
Wolfspeed has received a conditional commitment for up to $1.5 billion in financing from the Department of Defense's Office of Strategic Capital, according to reports by Bloomberg and Barron's. Wolfspeed, which filed for bankruptcy in 2025, saw its stock surge following the report, rising 26.91% to $39.85 in after-hours trading after closing regular trading up 15.58% at $36.79.[1][2][3][4][5]
The proposed financing is structured as a 30-year senior secured delayed-draw term loan. In exchange for the capital, Wolfspeed would grant the department volume-weighted average price warrants for up to 7.5% of its fully diluted equity, distributed as individual tranches are funded. The funding is intended to bolster domestic silicon carbide and wide-bandgap power devices for national security purposes, including gallium nitride epitaxy for communications and electronic warfare, as well as radiation-hardening across current and future semiconductor product lines.[1][5]
The commitment does not represent a closed deal. The facility remains subject to due diligence, definitive documentation, regulatory approvals, and appropriations, and Wolfspeed stated there is no guarantee the financing will ultimately be finalized.[1]
Key facts
- The U.S. defense establishment's Office of Strategic Capital issued a conditional loan commitment of up to $1.5 billion to Wolfspeed.
- In exchange for the loan, Wolfspeed would issue VWAP-based warrants for up to 7.5% of its fully diluted equity as tranches are funded.
- The financing is structured as a 30-year senior secured delayed-draw term loan.
- The capital supports domestic silicon carbide, wide-bandgap power devices, gallium nitride epitaxy, and radiation-hardening for national security use.
- Wolfspeed shares climbed 26.91% to $39.85 in after-hours trading after closing regular trading at $36.79, up 15.58%.
- Wolfspeed previously filed for bankruptcy in 2025.
- The commitment remains conditional and requires diligence, definitive agreements, approvals, and appropriations, with no assurance of completion.
Sources · 5 sources
- TW
The Wolf Of All Streets@scottmelkerPost on X ·
Wolfspeed $WOLF received a conditional commitment for up to $1.5 billion from the U.S. Department of War. The facility would be a 30-year senior secured delayed-draw term loan, issued through the Office of Strategic Capital. The capital is aimed at domestic silicon carbide and wide-bandgap power devices for national security use. That includes gallium nitride epitaxy for communications and electronic warfare, plus radiation-hardening for current SiC and future GaN products. This is not a closed loan. It still requires diligence, definitive agreements, approvals and appropriations. Wolfspeed said there is no assurance the financing will be provided. In return, Wolfspeed would issue the department VWAP-based warrants for up to 7.5% of its fully diluted equity, handed out as each tranche is funded. The Pentagon is no longer just a customer. It wants the cap table.
Open source - EV
Evan@StockMKTNewzPost on X ·
DEPARTMENT OF WAR'S OFFICE OF STRATEGIC CAPITAL ANNOUNCES $1.5 BILLION CONDITIONAL LOAN COMMITMENT TO WOLFSPEED $WOLF - Bloomberg https://t.co/arJAGCso1E
Open source - BL
Bloomberg@businessPost on X ·
The US Defense Department pledged to issue a conditional loan to Wolfspeed, the chipmaker that filed for bankruptcy last year, for as much as $1.5 billion https://t.co/ACKvDTvg60
Open source - BA
Barron's@barronsonlinePost on X ·
Wolfspeed Stock Soars on Financing Deal with Pentagon https://t.co/ZuPmMIsjDp
Open source - TE
Techmeme@TechmemePost on X ·
The DOD offers chipmaker Wolfspeed, which filed for bankruptcy in 2025, a conditional loan of up to $1.5B in exchange for warrants for up to 7.5% of the company (@lynnmdoan / Bloomberg) (Visit Techmeme dot com for the link and full context!)
Open source