Wabash Announces ABL Amendment to Accelerate Trailers as a Service (TaaS) Initiative

Rhea-AI Summary

Wabash (NYSE: WNC) has announced an amendment to its asset-backed lending facility, increasing the total credit facility to $350 million and adding liquidity of up to $125 million. This liquidity will be used to enhance Wabash’s Trailers as a Service (TaaS) offering, part of its Parts and Services growth strategy. The amendment extends the facility's maturity to September 23, 2027, and allows for future increases up to $525 million, subject to lender approval. This strategic move is aimed at funding organic investments with favorable returns.

Positive

• Increased credit facility to $350 million enhances liquidity.
• Anticipated $125 million liquidity will accelerate Trailers as a Service offering.
• Extension of facility maturity to September 23, 2027, provides financial stability.
• Potential increase of facility size up to $525 million can support future growth.
• Implementation of Trailers as a Service offers new recurring revenue stream.

Negative

• None.

LAFAYETTE, Ind., Sept. 26, 2022 (GLOBE NEWSWIRE) -- Wabash (NYSE: WNC), the visionary leader of connected solutions for the transportation, logistics and distribution industries, today announced an amendment to its asset-backed lending facility, increasing the total credit facility to $350 million and creating additional liquidity of up to $125 million. The increased liquidity is anticipated to be used to accelerate the availability of Wabash’s Trailers as a Service (TaaS)™ offering.

TaaS provides access to trailers, supported by Wabash’s national dealer network as well as a recently announced parts distribution network. This rapidly evolving ecosystem is a key element of Wabash’s Parts and Services growth strategy and provides a new stream of recurring revenue.

“Our strategy seeks to further Wabash’s competitive advantage over the next decade by investing in our existing competencies and developing new capabilities,” said Brent Yeagy, president and chief executive officer. “Our Trailers as a Service initiative combines our market-leading trailer products with emerging capabilities like parts distribution and a growing maintenance and repair network in order to provide a valuable suite of services to our customers and contribute to our growing base of recurring revenue in our Parts and Services segment.”  

Upon closing of this amended credit agreement and based on current eligible assets, liquidity increased approximately $100 million. The agreement extends the scheduled maturity to September 23, 2027, and includes options to increase facility size up to $525 million, subject to certain terms and conditions including approval from lenders.

“This expansion in our borrowing capacity provides access to reasonably priced capital with which we plan to fund progress in our strategic growth, which we discussed at our May investor meeting,” said Mike Pettit, senior vice president and chief financial officer. “We have exciting near-term opportunities for organic investment which come with very attractive returns on capital and our expanded asset-backed lending facility will allow us to act swiftly to realize this potential.”

Wabash: Changing How the World Reaches You

As the innovation leader of connected solutions for the transportation, logistics and distribution industries, Wabash (NYSE: WNC) is Changing How the World Reaches You®. Headquartered in Lafayette, Indiana, the company’s mission is to enable customers to succeed with breakthrough ideas and solutions that help them move everything from first to final mile. Wabash designs and manufactures a diverse range of products, including: dry freight and refrigerated trailers, platform trailers, tank trailers, dry and refrigerated truck bodies, structural composite panels and products, trailer aerodynamic solutions, and specialty food grade processing equipment. Learn more at www.onewabash.com.

Media Contact:
Dana Stelsel
Director, Communications
(765) 771-5766
dana.stelsel@onewabash.com

Investor Relations:
Ryan Reed
Sr. Director, Corporate Development & Investor Relations
(765) 490-5664
ryan.reed@onewabash.com

FAQ

What is the significance of Wabash's increased credit facility to $350 million?

Wabash's increased credit facility to $350 million enhances liquidity, allowing for strategic investments and operational growth.

How will the additional $125 million liquidity be used by Wabash?

The additional $125 million liquidity is expected to accelerate Wabash's Trailers as a Service offering.

What is the maturity date of Wabash's amended credit agreement?

The maturity date of Wabash's amended credit agreement is extended to September 23, 2027.

Can Wabash increase its credit facility beyond $350 million?

Yes, the agreement includes options to increase the facility size up to $525 million, pending lender approval.

What are the potential benefits of the Trailers as a Service initiative for Wabash?

The Trailers as a Service initiative provides a new stream of recurring revenue and enhances customer service through better access to trailers.