v3.25.4
Long-term Debt
 6 Months Ended
Dec. 28, 2025
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt
As of June 29, 2025 (Predecessor):

(in millions of U.S. Dollars)Maturity DateEffective Interest RateInitial PrincipalRepayment of principalConversion to common stockOutstanding principalUnamortized premium/discountEnding BalanceEquity componentFair ValueFair value level
1.75% Convertible Notes
5/1/20262.2 %$575.0 $— $— $575.0 ($2.0)$573.0 $— $145.2 Level 2
0.25% Convertible Notes
2/15/20280.6 %750.0 — — 750.0 (7.9)$742.1 — 186.6 Level 2
1.875% Convertible Notes
12/1/20292.1 %1,750.0 — — 1,750.0 (20.7)$1,729.3 — 450.6 Level 2
2030 Senior Notes6/23/203016.3 %1,250.0 — — 1,521.2 (52.3)$1,468.9 — 1,308.2 Level 2
CRD Agreement Deposits7/5/20336.8 %2,000.0 — — 2,062.0 (37.3)$2,024.7 — 556.7 Level 3
$6,325.0 $— $— $6,658.2 ($120.2)$6,538.0 $— $2,647.3 


On the Petition Date, the Company commenced the Chapter 11 Cases. The filing of the Chapter 11 Cases constituted an event of default that accelerated the obligations under the Convertible Notes, Existing Senior Secured Notes, and the unsecured Customer Refundable Deposit Agreement, dated as of July 5, 2023, with Renesas (as amended to date, the “CRD Agreement”). On the Effective Date, the Company emerged from the Chapter 11 Cases.


As of December 28, 2025 (Successor):

(in millions of U.S. Dollars)
Maturity Date(1)
Effective Interest RateInitial Principal
Repayment of principal(2)
Conversion to common stock(3)
Outstanding principalUnamortized premium/discountLiability-classified derivativeEnding Balance
Equity component(4)
Fair ValueFair value level
New Senior Secured Notes6/23/203012.9%$1,259.2 ($164.8)$— $1,094.4 $104.2 $— $1,198.6 $— $1,034.2 Level 2
New 2L Non-Convertible Notes6/15/203112.5%296.4 — — $296.4 (64.8)$— $231.6 — 240.5 Level 2
New 2L Non-Renesas Convertible Notes6/15/20313.0%331.4 — (18.5)$312.9 (7.2)$— $305.7 159.3 493.6 Level 2
New 2L Renesas Convertible Notes(5)
6/15/203112.3%203.6 — — $203.6 (79.3)$103.5 $227.8 — 215.8Level 3
$2,090.6 ($164.8)($18.5)$1,907.3 ($47.1)$103.5 $1,963.7 $159.3 $1,984.1 
(1)Each instrument is as defined in the Plan.
(2)On December 22, 2025, the Company repurchased $175.0 million of aggregate principal of the New Senior Secured Notes, plus accrued and unpaid interest at a purchase price of $197.9 million. On December 23, 2025, $10.2 million of Paid-in-Kind ("PIK") Interest was incurred and recorded to the outstanding New Senior Secured Notes principal amount.
(3)On September 29, 2025, the Company issued the New 2L Non-Renesas Convertible Notes and New 2L Renesas Convertible Notes. The notes bear interest at 2.5% per annum on the outstanding principal, are secured, and are convertible into shares of Wolfspeed common stock at a conversion price of $12.23 and $18.35 per share, respectively. As of December 28, 2025, $18.5 million of New 2L Non-Renesas Convertible Notes were converted into 1.5 million shares of Wolfspeed common stock.
(4)ASC Topic 470: Debt (“ASC 470”) presumes that when a convertible debt instrument is issued at a substantial premium compared to the principal amount, the premium should be recognized in equity as paid-in-capital. The excess of the initial carrying amount over par of $168.8 million was recorded to additional paid-in-capital. Approximately 5.6% of the equity component is not related to the outstanding convertible notes due to conversions during the period.
(5)The conversion option does not qualify for a derivative scope exception and is accounted for as a separate derivative liability, initially recognized with a corresponding discount on the debt. The derivative is remeasured at fair value at each reporting period with changes recognized through change in fair value of derivative instruments on the consolidated statements of operations. At December 28, 2025, the fair value of $215.8 million includes the fair value of the embedded derivative of $103.5 million.
On the Effective Date, the conditions to the effectiveness of the Plan were satisfied or waived and the Plan became effective, and each holder of the aforementioned corporate debt holdings and deposits under the CRD Agreement received portions of the restated debt obligations and New Common Stock, and all of the Company’s outstanding obligations under the aforementioned corporate debt holdings and CRD Agreement were discharged and terminated. Please refer to Note 1, "Basis of Presentation and New Accounting Standards," and Note 2, "Emergence from Voluntary Reorganization under Chapter 11," for additional information on the long-term debt.

Interest Expense
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to December 28, 2025September 29, 2025Three months ended December 29, 2024
Interest expense, net
$51.8 $— $66.6 
Amortization of premium, discount and debt issuance costs, net of capitalized interest5.5 — 13.3 
Interest expense, other0.7 — 0.6 
Total interest expense, net$58.0 $— $80.5 
SuccessorPredecessor
(in millions of U.S. Dollars)Period from September 30, 2025 to December 28, 2025Period from June 30, 2025 to September 29, 2025Six months ended December 29, 2024
Interest expense, net(1)
$51.8 $— $123.4 
Amortization of premium, discount and debt issuance costs, net of capitalized interest5.5 — 20.0 
Interest expense, other0.7 0.7 1.6 
Total interest expense, net$58.0 $0.7 $145.0 
(1): Excludes contractual interest of $99.7 million for the period from June 30, 2025 to September 29, 2025.
The Company capitalizes interest in connection with ongoing capacity expansions. Upon the substantial completion of the Siler City Fab at the end of fiscal 2025, interest capitalization ceased. Total interest expense capitalized for the three and six months ended December 29, 2024 were $20.9 million and $38.8 million, respectively.