Daily News: August 23, 2017

WFCF, Morgan Stanley Support Wabash National Supreme Industries Buy


To support its upcoming acquisition of Supreme Industries, Wabash National amended both its ABL revolving credit facility and its term loan. Wells Fargo Capital Finance served as agent for the revolver, and Morgan Stanley agented the term loan.

According to a related 8-K filing, the ABL credit agreement provides for $175 million senior secured revolving credit facility that matures on June 4, 2020. The agreement provides an uncommitted accordion feature allowing for increase to availability under revolving credit facility up to $50 million.

The term loan credit agreement provides for an $189.5 million senior secured term loan that matures on March 19, 2022 and uncommitted accordion feature allowing for additional senior secured term loans of up to $75 million.

The amendments permit the company to proceed with the previously announced acquisition of Supreme Industries, and issue equity-linked or debt securities or incur term loans or undertake other similar credit facilities or debt financings in an aggregate principal amount not to exceed $325 million. The proceeds of such transactions would be used, among other things, to consummate the acquisition.

In addition, the amendments permit the company to enter into a senior unsecured bridge credit facility of up to $300 million to be used to consummate the acquisition in the event that the proceeds from either the securities offering or the acquisition loans are not available to the company at the time of the consummation of the acquisition. The amendments also permit the company to incur certain liens and debt to be acquired by the company in connection with the acquisition.

Wabash National is one of North America’s largest producer of trailers.