Wabash to use revolving credit facility to pay off 3.25% convertibles

By Jennifer Lanning Drey

Portland, Ore., Feb. 11 - Wabash National Corp. plans to use available borrowings under its revolving credit facility to handle the obligations of its 3.25% senior convertible notes due Aug. 1, 2008, Robert Smith, Wabash's chief financial officer, said Monday during the company's fourth-quarter earnings conference call.

"The last time we checked with the bank...our current liquidity position would give us north of $200 million of borrowing capacity based on the asset base we have and the cash balances we had at the end of the year, so we feel comfortable between the position of the banks and our balance sheet [about] the capacity to follow through on the convertible notes with the revolving credit," Smith said.

The company had $104.5 million of the convertible notes outstanding at Dec. 31.

Wabash's liquidity stood at $234 million and included cash and cash equivalents of $41 million at year-end.

Under Wabash's second amended and restated revolving credit facility, the company must no later than May 1, 2008 repurchase the convertibles, defease any outstanding debt from the notes, or keep cash reserves equal to the outstanding balance of the convertibles from funds other than proceeds from the revolver.

Based in Lafayette, Ind., Wabash is a truck trailer manufacturer.

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