Winnebago Industries Announces Proposed Offering of $300.0 Million Aggregate Principal Amount of Senior Secured Notes

Rhea-AI Summary

Winnebago Industries (NYSE: WGO) announced plans to offer $300 million in senior secured notes due 2028. The proceeds will primarily be used to repay approximately $253.5 million of its term loan facility, with any remaining funds allocated for general corporate purposes and associated fees. The offering targets qualified institutional buyers and non-U.S. persons, and the securities will not be registered under U.S. securities laws. Investors should be aware of potential risks linked to the offering, including interest rate fluctuations and economic slowdowns.

Positive

• Plans to repay $253.5 million of term loan using proceeds from the notes offering.
• Targeting qualified institutional buyers, enhancing financial stability.

Negative

• Potential risks include increases in interest rates and economic slowdown affecting liquidity.
• Confidentiality of the notes offering limits access to certain investors.

FOREST CITY, Iowa, June 30, 2020 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO) (the “Company”), a leading outdoor lifestyle product manufacturer, announced today that it intends to offer, subject to market conditions and other factors, $300.0 million in aggregate principal amount of senior secured notes due 2028 (the “Notes”).  The Company intends to use approximately $253.5 million of the proceeds of the offering to repay in full its obligations under its term loan facility. The remainder of the proceeds of the offering shall be used for general corporate purposes and to pay related fees and expenses.

The Notes and the related guarantees are being offered and sold to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes and the related guarantees will not be registered under the Securities Act or any state securities laws, and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release is being issued pursuant to Rule 135c under the Securities Act and shall not constitute an offer to sell or a solicitation of an offer to buy the Notes and the related guarantees or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. 

About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products under the Winnebago, Grand Design, Newmar and Chris-Craft brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motorhomes, travel trailers, fifth wheel products and boats. Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota and Florida. The Company's common stock is listed on the New York Stock Exchange and traded under the symbol WGO.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of important factors could cause the Company’s actual results to differ materially from these statements, including, but not limited to, risks relating to the offering of the Notes and the related guarantees, increases in interest rates, availability of credit, low consumer confidence, availability of labor, significant increases in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a continued slowdown in the economy, increased material and component costs, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing products, new product introductions by competitors, the effect of global tensions, integration of operations relating to merger and acquisition activities, business interruptions, any unexpected expenses related to our enterprise resource planning system, the impact of potential information technology, cybersecurity or data security breaches, risks related to compliance with debt covenants and leverage ratios, impacts of public health crises, such as COVID-19, and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2019 and subsequent quarterly reports on Form 10-Q, copies of which are available from the SEC or from the Company upon request. You should not rely upon forward-looking statements as predictions of future events. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release or to reflect any changes in the Company's expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.

Steve Stuber - Investor Relations - 952-828-8461 - srstuber@wgo.net  
Media Contact: Sam Jefson - Public Relations Specialist – 641-585-6803 - sjefson@wgo.net 

FAQ

What is the purpose of Winnebago's $300 million notes offering?

The offering aims to raise funds primarily to repay debt under its term loan facility.

When are the senior secured notes due?

The senior secured notes are due in 2028.

Who can purchase the senior secured notes from Winnebago?

The notes are offered to qualified institutional buyers and non-U.S. persons.

What is the stock symbol for Winnebago Industries?

Winnebago Industries trades under the symbol WGO on the New York Stock Exchange.

What are the risks associated with Winnebago's notes offering?

Risks include potential increases in interest rates and a slowdown in the economy that could affect liquidity.