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Wolfspeed, Inc. announced that the Committee on Foreign Investment in the United States (CFIUS) has cleared the company’s issuance of equity to Renesas Electronics America Inc., completing a central element of Wolfspeed’s previously announced restructuring agreement supporting its Chapter 11 process.
“CFIUS clearance represents the final milestone in the execution of our prepackaged restructuring,” said Robert Feurle, Chief Executive Officer. “With this phase behind us, Wolfspeed is fully focused on broadening and diversifying our customer base, expanding our leadership in SiC power devices, and scaling with discipline across our global manufacturing footprint.”
Under the court-approved plan, Renesas—previously a pre-petition creditor—will convert its outstanding unsecured loan into a mix of equity and secured convertible debt. Following CFIUS approval, Renesas will receive a seat on Wolfspeed’s Board of Directors and has appointed Aris Bolisay, vice president of finance at Renesas.
Given Renesas’ substantial equity position and board representation in a U.S. semiconductor manufacturer, the transaction required CFIUS review and clearance. With authorization now secured, the escrowed shares are cleared for release to Renesas.
In conjunction with this final milestone, Wolfspeed will also release the remaining 2% allocation of common stock to legacy pre-petition equity holders, completing the 5% equity recovery provided under the restructuring plan. The initial 3% was distributed on the plan’s effective date in September, with the remaining 2% held in escrow pending regulatory approvals.
Total share count update: following these issuances, Wolfspeed’s common shares outstanding will increase to approximately 45.1 million. This reflects 16,852,372 shares issued to Renesas, 871,287 shares for the final 2% equity recovery to pre-petition shareholders, and approximately 1.5 million shares issued pursuant to prior conversions of the second-lien convertible notes. This total excludes any future issuances under convertible notes, warrants, or incentive compensation plans.
Original – Wolfspeed
