Wabash cuts spread on $300 million term loan to Libor plus 475 bps

By Sara Rosenberg

New York, May 2 - Wabash National Corp. reduced pricing on its $300 million seven-year senior secured term loan (B1/B+) to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.

The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

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

Proceeds will be used to help fund the purchase of Walker Group Holdings LLC, a New Lisbon, Wis.-based manufacturer of liquid-transportation systems and engineered products, for $360 million.

Other funds for the transaction will come from $150 million of convertible senior notes.

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 manufacturer of semi-trailers.

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