00:00 Speaker A
Wolf speed shares are sinking today as the semiconductor maker is struggling to reach a deal with investors to refinance its $575 million convertible bonds due next year. So, that does seem to be the issue here. Um Bloomberg citing sources saying it is struggling to reach this deal with investors to refinance $575 million of convertible bonds due next year. It’s been working with J.P. Morgan on the refinancing effort. Company saying in a statement, Wolf Speed continues to explore alternatives with regard to its convertible notes in partnership, it says, with advisors, remains in dialogue with lenders.
00:47 Speaker B
Yeah, this is a company that makes silicon carbide wafers and chips are built on those wafers. The company had um signed a deal with the Commerce Department as part of the CHIPS Act to get some financing for a project to build out some production. Um the future of that is uncertain as is the future of the CHIPS Act more broadly. So that’s something to keep an eye on as well for this company. Um but obviously just a really dramatic decline and concerns it seems about future financing.
01:25 Speaker A
Down more than 90% now for the past four months. It’s just shelled.
01:31 Speaker B
Yeah.