With the required anti-trust review behind it, Wabash National Corporation is launching a $325 million private offering to fund the purchase price for the pending acquisition of Supreme Industries Inc., the trailer builder reported Monday.
According to the deal, announced Aug. 8, Wabash National would acquire all of the outstanding shares of Supreme in a cash tender offer for $21 per share, which represents an equity value of $364 million and an enterprise value of $342 million.
The acquisition last week cleared the waiting period mandated the Hart-Scott-Rodino Antitrust Improvements Act.
The senior unsecured notes will be due 2025, subject to market and other conditions, and will be guaranteed by certain of Wabash National’s direct and indirect existing and future domestic subsidiaries.
The offering is not conditioned upon the completion of the acquisition of Supreme. However, the notes will be subject to a special mandatory redemption if the Supreme acquisition is not consummated, according to the Wabash National notice.