Wolfspeed stock surges 20% on $1.5 billion defense loan

Wolfspeed (WOLF) stock surged 19% in after-hours trading on news of a proposed $1.5B loan to fund growth in silicon carbide and gallium nitride operations. The loan, if approved, would support U.S. national security projects and could issue warrants covering up to 7.5% of diluted shares. Analysts have a Hold consensus rating with an average price target of $27.50, suggesting 12.34% downside.

Wolfspeed has received a conditional US$1.5B loan from the US Department of War to expand production of SiC and GaN materials, supporting its defense sector focus.

Wolfspeed (WOLF) received a $1.5B conditional financing commitment from the U.S. Department of Defense for a 30-year term to boost domestic production of silicon carbide and gallium nitride technologies. Shares surged 24% in after-hours trading. The deal includes warrants allowing the DoD to acquire up to 7.5% equity. Finalization is subject to due diligence and approvals.

Wolfspeed (NYSE: WOLF) received a $1.5B loan commitment from the US Department of War's Office of Strategic Capital for SiC materials and wide bandgap power devices, focusing on national security applications. Latham & Watkins LLP advised on the transaction.

Wolfspeed received a conditional $1.5B loan from the US DoD to expand silicon carbide production. The 30-year loan, subject to conditions, includes warrants for 7.5% equity. Shares rose 27% in extended trading.

Wolfspeed (WOLF) shares rose 25% in post-market trading after securing a $1.5B, 30-year conditional loan from the U.S. Department of War to support domestic supply chain development and production.