Wolfspeed Inc. , a maker of silicon carbide and gallium nitride technologies for use in power-switching devices, EVs, 5G and renewable energy among other applications, said Wednesday it is planning to offer $1.3 billion of convertible bonds that mature in 2029. Proceeds will be used to fund capped call transactions that aim to reduce dilution on conversion, as well as for general corporate purposes. The interest rate, initial conversion rate and other terms will be set upon pricing. Separately, Wolfspeed said BorgWarner Inc. agreed to invest $500 million in its financing program in exchange for a silicon carbide device capacity corridor. BorgWarner will be entitled to buy up to $650 million of devices annually as its requirements increase. Shares of Wolfspeed are down 6.7% in premarket trades. The stock has fallen 16% in the year to date, matching the S&P 500's decline. BorgWarner shares are down 0.7% in premarket trades.
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