Winnebago commitment from JPMorgan totals $425 million in two tranches

By Wendy Van Sickle

Columbus, Ohio, Oct. 5 – Winnebago Industries, Inc.’s financing commitment from JPMorgan Chase Bank, NA consists of a $300 million seven-year secured term loan B facility and a $125 million five-year asset-based revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Pricing on the covenant-light term loan is expected at Libor plus 450 basis points with a 1% Libor floor.

The term loan has 101 soft call protection for six months.

Revolver pricing is expected to range from Libor plus 175 bps to 200 bps based on excess availability, and the commitment fee is expected to range from 25 bps to 37.5 bps based on the average daily unused portion of the revolver.

As previously reported, JPMorgan committed the funding in connection with Winnebago’s planned acquisition of Grand Design Recreational Vehicle Co.

The total purchase price is about $395 million of cash and $105 million of newly issued Winnebago shares.

Winnebago said it plans to use the proceeds from the term loan and a portion of the revolver, along with $60 million in cash, to complete the acquisition.

The remainder of the revolver will be used for working capital needs.

The credit facilities are expected to be secured by all or substantially all Winnebago’s assets and will replace Winnebago’s current credit facility with Wells Fargo Bank, NA.

Winnebago is a Forest City, Iowa-based manufacturer of recreation vehicles. Grand Design is a manufacturer of towable recreation vehicles.

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