Wabash National eyes launch of $150 million convertible senior notes

By Rebecca Melvin and Sara Rosenberg

New York, April 16 - Wabash National Corp. said it expects to price $150 million of convertible senior notes concurrently with a $300 million seven-year secured term note to finance its previously announced acquisition of Walker Group Holdings LLC, a New Lisbon, Wis.-based manufacturer of liquid-transportation systems and engineered products, for $360 million, according to a regulatory filing.

The convertible notes will be convertible into cash or shares or a combination of cash and shares at Wabash's option, with net share settlement.

No further information regarding the convertibles was available by Prospect News' deadline.

Wabash will hold a bank meeting on Wednesday to launch the term loan, according to a market source.

Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

As a backup for the loan and convertibles, the company has received a commitment for a $450 million four-year senior secured bridge loan.

Closing is expected in the second quarter, subject to regulatory approval.

In addition, the company plans on amending its asset-based revolver to allow for the acquisition and the financing and will repay $60.6 million of revolver borrowings.

In case an amendment can't be obtained, the company has received a commitment from Morgan Stanley and Wells Fargo for a new five-year asset-based revolver to replace the existing facility.

Wabash is a Lafayette, Ind.-based maker of trucking semi trailers.

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