Wabash obtains $222 million credit facility

By Sara Rosenberg

New York, Sept. 23 - Wabash National Corp. closed on a new $222 million three-year credit facility. Fleet Securities Inc. served as lead arranger, Fleet Capital Corp. was the administrative agent, National City Bank was the syndication agent, and Wachovia Bank and GE Capital were co-documentation agents.

Merrill Lynch, LaSalle Bank, Fifth Third Bank and Washington Mutual also participated in the financing.

The facility, which is secured by all company assets, consists of a $47.1 million term loan with an interest rate of Libor plus 275 basis points and a $175 million revolver with an interest rate of Libor plus 250 basis points and an unused fee of 37.5 basis points. Approximately $84 million was borrowed under the revolver at closing.

"We are extremely pleased with the completion of our new financing package," said Christopher A. Black, vice president and treasurer, in a news release. "Fleet Capital and the seven other syndicate banks did an outstanding job of working with us to construct a credit facility that will serve us well over the next three years. We believe we have constructed a bank group with outstanding leadership, excellent knowledge and the capacity to meet the company's various financial needs during the foreseeable future."

In addition to closing on the credit facility, the company also announced that it completed the sale of substantially all of the assets of its trailer leasing and rental, and wholesale aftermarket parts distribution businesses to Aurora Trailer Holdings, LLC.

"The closing of the asset sale and bank refinancing combined with our previous issuance of $125 million 3.25% convertible senior unsecured notes, represents the refinancing of substantially all of the company's outstanding indebtedness. The company's average cost of debt has been lowered from over 10% to less than 4%, resulting in an approximate $20 million savings in interest expense annually. Our new capital structure well positions the company for an improving industry environment and represents the culmination of work during the past two years to secure the company's future," said Mark R. Holden, senior vice president and chief financial officer, in a news release.

Wabash is a Lafayette, Ind. truck trailer and intermodal equipment company.

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