05:03 AM EDT, 06/23/2025 (MT Newswires) -- Wolfspeed ( WOLF ) said Sunday that it entered into a restructuring support agreement with its key lenders to reduce its overall debt by about $4.6 billion, or roughly 70%, and to lower its annual cash interest payments by about 60%.

Under the agreement, the company will pay down $250 million of its senior secured notes and receive $275 million of new financing in the form of second lien convertible notes.

The company will exchange $5.2 billion of its existing convertible notes and an existing loan by its Renesas Electronics unit for $500 million of new notes and 95% of new common equity.

Wolfspeed ( WOLF ) also said it plans to file voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code and expects to complete the restructuring process expeditiously by end of Q3.

The company's shares were down nearly 16% in recent premarket activity Monday.