The unaudited pro forma consolidated financial information for Wolfspeed, Inc. along with its wholly owned subsidiaries (collectively, “Wolfspeed”) provides a detailed insight into the company's financial position following its prepackaged plan of reorganization, which became effective on September 29, 2025. The press release gives effect to the expected adoption of fresh start accounting on the Plan Effective Date, in accordance with Accounting Standards Codification (“ASC”) 852, “Reorganizations” (“ASC 852”).
The plan settlements included various transactions and treatment of claims, with senior secured notes claimholders receiving a principal amount of $1.26 billion in New Senior Secured Notes due 2030 and certain commitment fees totaling $10.5 million. Additionally, convertible notes claimholders received rights to participate in the rights offering of new 2.5% Convertible Second-Lien Senior Secured Notes due 2031 in the aggregate principal amount of approximately $301.1 million, which were offered at a purchase price of 91.3242% totaling $275.0 million.
Furthermore, Renesas Electronics America Inc. (“Renesas”) received a principal amount of approximately $203.6 million of new 2.5% Convertible Second-Lien Senior Secured Notes due 2031, a warrant to purchase up to 4,943,555 shares of New Common Stock, and 16,852,372 shares of New Common Stock from the Share Reserve. The press release also details the termination of material definitive agreements and the treatment of existing equity interests, contingent shares, and contingent cash.
Fresh start accounting, in accordance with ASC 852, is expected to be adopted by Wolfspeed upon its emergence from bankruptcy. The press release highlights the ongoing process of finalizing fair value estimates of the company's assets and liabilities, emphasizing the potential impact on reported values.
The enterprise value of Wolfspeed was estimated to be $2,600 million for financial reporting purposes, derived using an income approach that utilizes a discounted cash flow (DCF) model. The preliminary estimated implied value of Wolfspeed’s common stock outstanding as of the Effective Date is $569.2 million.
Additionally, the press release provides a breakdown of the enterprise value, the implied value of Wolfspeed, Inc.’s Common Stock, and the reorganization value, offering a comprehensive view of the company’s financial position.
Today the company's shares have moved -6.8% to a price of $18.22. For more information, read the company's full 8-K submission here.
