Wabash Completes Acquisition of Walker Group Holdings

Wabash National Corporation (NYSE: WNC) has completed its previously announced acquisition of Walker Group Holdings, LLC, a producer of liquid transportation systems and engineered products based in New Lisbon, Wisconsin, for an all-cash purchase price of $360 million, subject to customary post-closing adjustments.

“I am pleased to formally welcome Walker’s leadership team and associates to Wabash National,” said Wabash National’s President and Chief Executive Officer, Richard Giromini. “The acquisition brings together two complementary, leading transportation equipment organizations. The addition of Walker to our Diversified Products segment further advances our diversification efforts and bolsters our growth platform into higher margin products.”

Concurrently with the closing of the Walker acquisition, Wabash also successfully syndicated two senior secured credit facilities, including a seven-year, $300-million Term Loan B and an Amended and Restated five-year, $150-million revolving credit facility. Proceeds from the term loan and Wabash’s issuance of 3.375% Senior Convertible Notes due 2018, previously announced on April 17, 2012, were used to finance the acquisition and related fees and expenses.

The revolving credit facility, which amended certain terms of Wabash’s revolving credit facility completed on June 28, 2011, includes a group of lenders led by Wells Fargo Capital Finance, LLC, part of Wells Fargo & Company, acting as administrative agent and joint lead arranger and joint lead book runner with RBS Citizens Business Capital, a division of RBS Citizens, N.A. The amended facility adjusts the company’s borrowing capacity under its previous credit facility from $175 million to $150 million, subject to a borrowing base, and will reduce borrowing costs relative to the previous facility. The new facility also will provide an option to increase the total facility borrowing capacity up to $200 million, subject to a borrowing base and lender agreement.

The Term Loan B was completed with Morgan Stanley Senior Funding, Inc. acting as joint lead arranger, joint bookrunner, administrative agent, and collateral agent and Wells Fargo Securities, LLC, acting as joint lead arranger and book-runner. GE Capital Markets, Inc., and BMO Capital Markets served as co-managers on the transaction. The Loan was priced at a spread of 475 basis points over LIBOR, subject to a LIBOR “floor” of 125 basis points, and was issued with original issue discount at 99.

Related content: Wabash Inks Agreement to Acquire Walker Group Holdings

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