US Defense Department Pledges $1.5 Billion Loan to Wolfspeed

The United States Department of Defense pledged a conditional loan of up to $1.5 billion to Wolfspeed Inc., a chipmaker that filed for bankruptcy last year. The funding aims to support the development of materials that the company describes as key to national security.

According to a company statement, the government provided a conditional 30-year commitment letter for a senior secured facility. The transaction remains subject to negotiation and includes a provision where Wolfspeed would issue warrants. These warrants would allow the Defense Department to purchase up to 7.5% of the company's shares in tranches.