TechPrecision’s revolver extension leaves lender’s default remedies intact

Wolfspeed said on Oct. 7 that the Department of War's Office of Strategic Capital gave it a conditional commitment for up to $1.5 billion.¹ The commitment contemplates a senior secured delayed-draw term loan expected to run 30 years. Its first $600 million would refinance in full Wolfspeed's first lien senior secured notes due 2030 and pay transaction fees, replacing those noteholders with the government as a senior secured lender.²

The remaining $900 million, in tranches of $200 million to $400 million, would fund further spending on a project that Wolfspeed, before the first draw, must commit to complete. It covers domestic silicon carbide wafer and power device production, domestic or onshored gallium nitride (GaN) production, GaN-on-SiC radio frequency epitaxial wafer technology and radiation hardening.² The department says the financing would help strengthen domestic access to wide bandgap materials and devices used in radars, electronic warfare and missile defense.³

Those later tranches also need offtake agreements acceptable to the office, and every draw requires compliance with financial covenants, including a loan-to-value covenant. Wolfspeed must meet a $750 million minimum contribution over time from qualifying sources, which include new equity and convertible notes converted or equitized into equity.²

As tranches fund, Wolfspeed would issue the department warrants for up to 7.5% of its fully diluted equity.¹ The terms would also restrict changes of control with parties other than permitted persons and require a U.S.-citizen board majority. Wolfspeed says restrictions on "Fundamental Events" could limit mergers and acquisitions.²

Denmark announced plans on Oct. 22, 2026, to acquire long-range precision missiles, Breaking Defense reported. The purchases cover Kongsberg’s Joint Strike Missile for the F-35 and Covenant’s ground-launched Anthem cruise missile.¹

For Covenant, the Danish purchase announcement follows Anthem’s unveiling last month. Co-founder and chief executive Michael Kaufman said the company had flown the weapon more than 200 times since its first flight in August 2025.¹

The Joint Strike Missile would equip Denmark’s growing F-35 fleet. Denmark is on track to operate 43 F-35s. It pledged to acquire another 16 last year. The F-35A can carry the missile internally, preserving the aircraft’s stealth profile.¹