Shares of Wolfspeed Inc. (WOLF) tumbled 5.39% in pre-market trading on Tuesday, following news of a substantial refinancing offer from the company's creditors. The U.S. chipmaker's stock reaction suggests investors are concerned about the firm's financial health and future prospects.

According to a Financial Times report, Wolfspeed's creditors have extended an offer of approximately $600 million to refinance a large convertible bond due in 2026. This move appears to be a preemptive measure to address potential financial challenges facing the company. The refinancing offer indicates that creditors are seeking to secure their positions and provide Wolfspeed with some financial breathing room.

The market's negative reaction to this news highlights investor unease about Wolfspeed's debt situation and overall financial stability. While the refinancing offer could provide short-term relief, it also raises questions about the company's long-term financial strategy and ability to meet its obligations. As trading progresses, investors will likely be watching closely for any official statements from Wolfspeed regarding this refinancing offer and its plans to address its financial position.