21 August 2018

Cree offers $500m of convertible senior notes

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Cree Inc of Durham, NC, USA (which makes lighting-class LEDs, LED lighting and power semiconductors) intends to offer, subject to market conditions and other factors, $500m of its convertible senior notes due 2023 in a private offering to qualified institutional buyers. In addition, Cree expects to grant the initial purchasers an option to purchase (for settlement within a 13-day period from, and including, the date on which the notes are first issued) up to a further $75m of the notes.

The notes will be unsecured, senior obligations of Cree, and interest will be payable semi-annually in arrears. They will be convertible into cash, shares of Cree’s common stock, or a combination thereof, at Cree’s election. The interest rate, initial conversion rate, repurchase or redemption rights and other terms are to be determined upon pricing of the offering by negotiations between Cree and the initial purchasers of the notes.

Cree intends to use part of the net proceeds to repay its borrowings under its revolving credit facility and the remainder to fund capacity expansion of Wolfspeed (its Power & RF device and silicon carbide materials business), working capital needs and for general corporate purposes.

See related items:

Cree’s quarterly revenue grows 15%, driven by 40% organic year-on-year growth from Wolfspeed

Cree names Neill Reynolds as CFO

Tags: Cree LED Wolfspeed

Visit: www.cree.com