Wolfspeed Convertible Refinancing Deal Snags, Stock Sinks (2)

Wolfspeed Inc.is struggling to reach a deal with investors to refinance its $575 million convertible bonds due next year.

The Durham, North Carolina-based chipmaker has been working with JPMorgan Chase & Co. on the refinancing effort, according to people with knowledge of the matter, who asked not to be identified discussing private talks.

Wolfspeed shares closed at $2.59 Friday after sinking nearly 52%, its largest-ever one-day drop. Based on where the company’s stock is currently trading, a conversion to equity is unlikely unless that price reaches $47.32. The notes were quoted at around 60 cents on the dollar as ...