Wolfspeed rebounds after upsized $1.5 bln convertible debt deal

BorgWarner

17/11/2022 17:15

** Shares of Wolfspeed Inc  WOLF.N  up 2.8% at $90.52 on
Thurs after chip co secures more capital than targeted
    ** WOLF prices $1.525 bln 1.875% 7-yr convertible bond (CB)
deal
    ** Conversion price of $118.88 represents 35% premium to
stock's last close
    ** WOLF's shares on Weds fell 6.1% after co launched $1.3
bln CB deal, and said BorgWarner Inc  BWA.N  to purchase $500
mln of the financing as part of strategic partnership
    ** Under multi-yr agreement, BWA entitled to purchase
annually up to $650 mln of silicon carbide converters used to
charge electric vehicles
    ** WOLF's shares down ~19% YTD, including move on Thurs, for
roughly $11 bln market value, per Refinitiv
    ** Stock among top performers in Philadelphia Semiconductor
index  .SOX , which is up 0.6% on the sesssion. YTD, SOX off 31%
 (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))