The Pentagon has proposed a conditional senior secured loan commitment of up to $1.5 bln with a 30-year term to Wolfspeed (WOLF.N) to support U.S. silicon carbide (SiC) materials and wide-bandgap power device production. Under terms still to be negotiated, Wolfspeed would issue warrants allowing the Pentagon to acquire up to 7.5% of the company in tranches. Wolfspeed, which filed for bankruptcy in July after production problems at a key SiC wafer plant, said it will use the financing to expand S

The Pentagon has proposed a conditional senior secured loan commitment of up to $1.5 bln with a 30-year term to Wolfspeed (WOLF.N) to support U.S. silicon carbide (SiC) materials and wide-bandgap power device production. Under terms still to be negotiated, Wolfspeed would issue warrants allowing the Pentagon to acquire up to 7.5% of the company in tranches. Wolfspeed, which filed for bankruptcy in July after production problems at a key SiC wafer plant, said it will use the financing to expand SiC and power-device output for telecom, aerospace and defense and to upgrade materials supply for military communications systems. Shares jumped more than 28% in after-hours trading on the news.