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Wabash National Corporation: Wabash National Corporation Closes Investment for $35 Million Capital Infusion

^{Published on 2009-08-03 06:24:49, Last Modified on 2009-08-03 06:24:57 - Market Wire}
 

LAFAYETTE, IN--(Marketwire - August 3, 2009) - Wabash National Corporation (NYSE: [ WNC ]) today announced that it has successfully closed the previously announced $35 million investment in the Company by Trailer Investments, LLC, an entity formed for this purpose by Lincolnshire Equity Fund III, L.P., a private equity investment fund managed by Lincolnshire Management, Inc. As part of the investment, the Company issued Series E, Series F, and Series G redeemable preferred stock to Trailer Investments, as well as a warrant that is immediately exercisable for common stock representing 44.21% of the issued and outstanding common stock of the Company, subject to certain upward adjustments.

An Amended and Restated Loan and Security Agreement, which amended and restated the Company's prior revolving credit facility, also became effective upon the completion of the investment. The revolving credit facility, as amended, now provides for borrowings of up to $100 million, subject to a borrowing base and applicable reserves.

In connection with the proposed investment, the Company increased the size of its board of directors to twelve members and appointed the following designees of Trailer Investments: Thomas J. Maloney, Michael J. Lyons, Vineet Pruthi, James G. Binch, and Andrew C. Boynton. Messrs. Maloney, Lyons, Pruthi and Binch are principals of Lincolnshire Management, and Mr. Boynton is the dean of Boston College's Carroll School of Management.

"We are excited to welcome Trailer Investments as not only an investor in Wabash National but, more importantly, as our new partner. Lincolnshire Management brings a proven track record of success and has consistently demonstrated a strong commitment to supporting the companies that they invest in," said Dick Giromini, Wabash National Corporation's President and Chief Executive Officer. "This investment, combined with the amended credit facility and the continuing impact of our cost restructuring initiatives, provides the capital structure that we believe will meet the needs of the Company during this economic downturn, and we look forward to profitable growth as business conditions improve."

Michael J. Lyons, Senior Managing Director of Lincolnshire Management, said, "We are extremely pleased to have closed our investment in Wabash National and to provide the Company with more operating flexibility during this economic downturn. We look forward to working together with the management team to grow Wabash's market leading position and franchise."

About Wabash National Corporation

Headquartered in Lafayette, Ind., Wabash National® Corporation (NYSE: [ WNC ]) is one of the leading manufacturers of semi-trailers in North America. Established in 1985, the company specializes in the design and production of dry freight vans, refrigerated vans, flatbed trailers, drop deck trailers, dump trailers, truck bodies and intermodal equipment. Its innovative core products are sold under the DuraPlate®, ArcticLite®, FreightPro™ Eagle® and Benson™ brand names. The company operates two wholly-owned subsidiaries; Transcraft ® Corporation, a manufacturer of flatbed, drop deck, dump trailers and truck bodies; and Wabash National Trailer Centers, trailer service centers and retail distributors of new and used trailers and aftermarket parts throughout the U.S.

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, the sufficiency of the Company's capital structure, the needs of the Company in the future and whether profitability can be achieved. 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 current contraction in demand for transportation equipment associated with current economic conditions, 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, uncertainty in the outcome of our discussions with lenders, and dependence on industry trends. 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.