Wells Fargo Capital Finance served as administrative agent, joint lead arranger and joint bookrunner on a $175 million revolving credit facility for Wabash.
According to a related 8-K filing, Citizens Business Capital acted as syndication agent, joint lead arranger and joint bookrunner on the transaction.
Wabash has the option to increase the total facility commitments to up to $275 million, subject to certain conditions. Availability under the facility will be based upon quarterly borrowing base certifications of the company’s eligible inventory and eligible accounts receivable, and will be reduced by certain reserves in effect from time to time.
Subject to availability, the facility also provides a letter of credit subfacility in an amount not in excess of $15 million and allows for swingline loans in an amount not in excess of $17.5 million.
Borrowings under the facility will bear interest at an annual rate, at the Wabash’s election, equal to LIBOR plus a margin ranging from 1.25% to 1.75% or a base rate plus a margin ranging from 0.25% to 0.75%, in each case depending upon the monthly average excess availability under the revolving loan facility. The company will be required to pay a monthly unused line fee equal to 0.20% times the average daily unused availability along with other customary fees and expenses of the Revolver Agent and the lenders.
The facility is scheduled to mature on December 21, 2023, subject to certain springing maturity events, and contains customary covenants limiting the ability of the company and its affiliates to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock, enter into transactions with affiliates, merge, dissolve, repay subordinated indebtedness, make investments and dispose of assets.
Additionally, Wabash will be required to maintain a minimum fixed charge coverage ratio of not less than 1.0 to 1.0 as of the end of any period of 12 fiscal months when excess availability under the facility is less than 10.0% of the total revolving commitment.
Established in 1985 in Lafayette, IN, Wabash is a diversified industrial manufacturer and producer of semi-trailers, truck bodies and liquid transportation systems.
