Wabash closes on asset sale
Sep 24, 2003 12:00 PM
Wabash National Corporation announced it has completed the sale of substantially all of the assets of its trailer leasing and rental, and wholesale aftermarket parts distribution businesses to Aurora Trailer Holdings, LLC. In addition, the company announced it has also closed on its new bank financing package. In connection with these transactions, the company incurred approximately $21 million in debt extinguishment costs and approximately $2 million in asset disposition charges. BB&T Capital Markets served as the financial advisor to the company on the asset sale. "The closing of the asset sale and bank refinancing combined with our previous issuance of $125 million 3.25% convertible senior unsecured notes, represents the refinancing of substantially all of the Company's outstanding indebtedness," said Mark R. Holden, Senior Vice President and Chief Financial Officer. "The Company's average cost of debt has been lowered from over 10% to less than 4%, resulting in an approximate $20 million savings in interest expense annually. Our new capital structure well positions the Company for an improving industry environment and represents the culmination of work during the past two years to secure the Company's future."
