Wolfspeed Wins $1.5 Billion Financing From Chips Act, Apollo; US grant of $750 million will support NC, NY factory sites

10/15/2024

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Bloomberg

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• Subcategory: Capital Markets: Debt, Capital Markets: Equity, Industrial: Manufacturing

• Tag: Investment | New Construction | Strategy

• Additional Filters-Subcategory: Capital Markets: Debt-Construction Loan

• Company: Apollo Global Management Inc. (NYSE: APO)

Wolfspeed Inc., a manufacturer of chips used primarily in electric vehicles, is in line to win $750 million in US government grants as well as $750 million in financing led by Apollo Global Management Inc. to support its factory expansion plans.

The grant from the 2022 Chips and Science Act will cover a portion of the company’s more than $6 billion in planned spending for factories in North Carolina and New York. The projects are anticipated to create more than 2,000 manufacturing jobs and 3,000 construction jobs, the Biden administration said Tuesday in a statement. The grant spurred the financing from Apollo, The Baupost Group, Fidelity Management & Research Co. and Capital Group, according to the statement.