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Wabash National Corporation Completes Amendment and Repricing of Senior Secured Term Loan Facility


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Copyright © Thomson Reuters 2013. All rights reserved.
2013-04-29 14:53:02 -

LAFAYETTE,  Ind.  -  April  29, 2013 -  Wabash  National Corporation (NYSE: WNC)
announced  that it has  completed an amendment  to its senior  secured Term Loan
Credit  Agreement  that  is  expected  to  reduce  annual cash interest costs by
approximately  $5  million.  As  a  result  of this amendment, which will become
effective on May 9, 2013, the Company's credit agreement will be priced at LIBOR
plus  350 basis points, subject to a LIBOR  floor of 100 basis points.  Prior to
the  amendment,  the  Company  had  $297  million  outstanding under this credit
agreement,  priced at LIBOR plus 
475 basis points, subject to a LIBOR floor of 125 basis points. The amendment to the credit agreement also provides, among other things, greater flexibility for the Company by eliminating a financial covenant test requiring it to maintain a minimum interest coverage ratio.  In addition, concurrent with the closing of the amendment, the Company will reduce its outstanding commitments under the credit agreement by electing to make a voluntary principal payment of $20 million. Mark Weber, Senior Vice President and Chief Financial Officer commented, "Repricing of the credit agreement to reduce our interest cost by 150 basis points is one step in our on-going effort to manage the capital structure of the Company to provide flexibility and cash flow necessary to execute our strategy. Furthermore, we commented previously that debt reduction is a priority for the Company this year and the $20 million term loan repayment which will occur concurrent with the closing of the amended term loan demonstrates our commitment to do just that." The Amended Term Loan facility was completed with Morgan Stanley Senior Funding, Inc. acting as lead arranger, bookrunner, administrative agent, and collateral agent, and Wells Fargo Securities, LLC, acting as joint lead arranger and bookrunner.  RBS Citizens Business Capital, a division of RBS Citizens, N.A., GE Capital Markets, Inc., and BMO Capital Markets served as co-managers on the transaction. About Wabash National Corporation Headquartered in Lafayette, Indiana, Wabash National Corporation (NYSE: WNC) is a diversified manufacturer and North America's leading producer of semi trailers and liquid transportation systems. Established in 1985, the Company specializes in the design and production of dry freight vans, refrigerated vans, platform trailers, intermodal equipment, liquid tank trailers, frac tanks, engineered products, and composite products. Wabash National operates three wholly-owned subsidiaries: Transcraft Corporation, Walker Group Holdings LLC, and Wabash National Trailer Centers, Inc. Its innovative products are sold under the following brand names: Wabash National(®), Transcraft(®), Benson(®), DuraPlate(®), ArcticLite(®), Walker Transport, Walker Stainless Equipment, Walker Defense Group, Walker Barrier Systems, Walker Engineered Products, Brenner(®) Tank, Garsite, Progress Tank, TST, Bulk Tank International, Beall(®) and Extract Technology(®). To learn more, visit www.wabashnational.com. Safe Harbor Statement This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements convey the Company's current expectations or forecasts of future events. All statements contained in this press release other than statements of historical fact are forward-looking statements. These forward-looking statements include, among other things, statements regarding our outlook for new trailer shipments and Operating EBITDA, backlog, expectations regarding trailer demand levels, improved profitability and earnings capacity, quote and inquiry levels for 2013, our intent to further enhance the margin profile of our core trailer business and the benefits of the acquisitions of Walker and certain assets of Beall.  These and the Company's other forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Without limitation, these risks and uncertainties include the uncertain economic conditions including the possibility that demand expectations may not result in order increases for us, increased competition, reliance on certain customers and corporate partnerships, risks of customer pick-up delays, shortages and costs of raw materials, risks in implementing and sustaining improvements in our manufacturing capacity and cost containment, dependence on industry trends and timing, costs of indebtedness incurred in connection with the acquisition of Walker and the failure to achieve the benefit of the Walker acquisition and Beall asset purchase.  Readers should review and consider the various disclosures made by the Company in this press release and in the Company's reports to its stockholders and periodic reports on Forms 10-K and 10-Q. # # # Press Contact: Tom Rodak Director of Corporate Marketing (765) 771-5555 Investor Relations:  Jeff Taylor VP Finance & Investor Relations (765) 771-5310   This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Wabash National via Thomson Reuters ONE [HUG#1697306]


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