Winnebago draws on asset-based revolver to help fund Grand Design buy

By Angela McDaniels

Tacoma, Wash., Nov. 14 – Winnebago Industries Inc. used a $53 million draw on its $125 million five-year asset-based revolver, the proceeds from its $300 million seven-year secured term loan B and $60 million of existing cash to complete its acquisition of Grand Design Recreational Vehicle Co. on Nov. 8, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company set pricing on the term loan B (B2/BB-) on Nov. 3 at Libor plus 450 basis points with 1% Libor floor and an original issue discount of 99.

The term loan has 101 soft call protection for one year, a net leverage covenant opening at 3.5 times and 3% amortization, which will step up to 5% beginning in December 2017.

The company released more information about the asset-based revolver in the 8-K filing on Monday.

The initial interest rate is Libor plus 175 bps. The margin over Libor ranges from 150 bps to 200 bps based on the average quarterly availability.

The initial commitment fee is 37.5 bps. The fee is 25 bps if the average daily total commitment utilization is more than 50% or 37.5 bps if the utilization is 50% or less.

For both the revolver and the term loan, JPMorgan Chase Bank, NA is the bookrunner, lead arranger and administrative agent.

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

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