S&P rates Wabash National notes B

S&P said it assigned its B issue-level rating and 5 recovery rating to Wabash National Corp.'s proposed $400 million senior notes. The 5 recovery rating reflects an expectation of modest (10%-30%; rounded estimate: 20%) recovery in the event of a payment default.

Wabash plans to use the proceeds to retire its existing $315 million senior notes due in 2025 and to pay off its existing $109 term loan.

The company is increasing its asset-based lending facility to $225 million from $175 million.

Recovery prospects for the new senior notes improve based on the net reduction in secured claims ahead of the notes, S&P said.

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