Wolfspeed (WOLF) Announces New Restructuring Plan

Wolfspeed, Inc. (NYSE:WOLF) is one of the 11 Best Semiconductor Penny Stocks to Buy According to Hedge Funds. On June 22, Wolfspeed, Inc. (NYSE: WOLF) unveiled a solid plan to proactively strengthen its capital structure. The company announced a Restructuring Support Agreement with key lenders, including holders of over 97% of its senior secured notes, a subsidiary of Renesas Electronics, and convertible debtholders holding over 67% of the outstanding convertible notes.

With this robust debt restructuring strategy, Wolfspeed, Inc. (NYSE:WOLF) aims to lower its overall debt by about $4.6 billion, which means the company will cut its debt by around 70%. The company expects to reduce the annual total cash interest payments by about 60%.

Wolfspeed (WOLF) Announces New Restructuring Plan

A worker assembling metal oxide semiconductor field effect transistors (MOSFETs) on a conveyer belt.

Through this forward-looking plan, Wolfspeed, Inc. (NYSE:WOLF) expects to position itself to execute on its long-term growth strategy and accelerate its path to profitability.

As of the third quarter of its fiscal year 2025, Wolfspeed, Inc. (NYSE:WOLF) has about $1.3 billion in cash. This provides the company with sufficient near-term liquidity to support its customers and pay its suppliers. The company expects to complete the restructuring by the end of the third quarter of calendar year 2025.

Wolfspeed, Inc. (NYSE:WOLF) is an American advanced semiconductor technology company that specializes in silicon carbide technologies. The company offers silicon carbide material, Power Modules, Discrete Power Devices, and Power Die Products for various applications.

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Disclosure: None. This article is originally published at Insider Monkey.