Wabash lines up $488.5 million bridge loans for Supreme buyout, plans high-yield notes

By Susanna Moon

Chicago, Aug. 9 – Wabash National Corp. obtained commitments for $488.5 million of bridge loans to help finance its acquisition of Supreme Industries, Inc. for $21.00 per share, or an equity value of $364 million and an enterprise value of $342 million.

The company said it expects to issue senior high-yield notes and use cash to pay the purchase price rather than drawing from the bridge facility.

Interest on the bridge loans will initially be Libor plus 275 basis points.

The financing consists of a $300 million 364-day senior unsecured bridge credit facility to finance the offer, which will mature after the merger closes; a $175 million asset-based revolving credit facility if the company is unable to amend its existing asset-based credit facility to permit the offer and merger; and an additional $188.5 million under the bridge facility to pay off the company’s existing term loan facility if it is unable to amend its term loan for the merger.

The company entered into a bridge facility commitment letter on Tuesday with Morgan Stanley Senior Funding, Inc., Wells Fargo Securities, LLC, Wells Fargo Capital Finance, LLC and Wells Fargo Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

Wabash is a Lafayette, Ind.-based diversified industrial manufacturer and a producer of semi-trailers and liquid transportation systems.

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