Wabash Announces ABL Amendment to Accelerate Trailers as a Service (TaaS) Initiative
Wabash, 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.”
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.
Dana Stelsel – Director Communications – email@example.com – (765) 771-5766
Source: Wabash National Corporation