Wolfspeed dips after announcing debt deal, BorgWarner partnership
16/11/2022 16:43
** Wolfspeed Inc's WOLF.N shares down 2.7% at $91.29 after
chip firm announces convertible debt offering, and BorgWarner
Inc BWA.N partnership
** WOLF early Weds said offering privately $1.3 bln 7-yr
convertible bonds (CBs) urn:newsml:reuters.com:*:nBw3Q6gcta
** Co to use some of net offering proceeds to fund cost of
capped call transactions, remainder for general purposes
** Also, co said BWA to invest $500 mln WOLF's financing
transaction for silicon carbide device capacity expansion
urn:newsml:reuters.com:*:nPn22L4yLa
** Under multi-year agreement, BWA entitled to purchase up
to $650 mln of devices annually as its requirements increase
** With move on the session, WOLF's shares down ~18% YTD for
market cap of ~$11.3 bln, per Refinitiv data
** WOLF's stock moves lower as Philadelphia Semiconductor
index .SOX falls >3% on Weds. Micron's MU.O shares off
nearly 5% as its 2023 forecast cut weighs on the sector
urn:newsml:reuters.com:*:nL4N32C35D
** SOX now off 31% in 2022
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))