Wabash Upsizes Convertible Note Offering to $130M, Prices at 32.5% Premium
WNC sits 77% above its 52-week low of $6.63 on elevated volume (5.9× avg).
Summary
Wabash priced its convertible notes offering at $130 million, up from the initially announced $100 million, with a $20 million greenshoe option. The notes carry a 4.00% coupon and an initial conversion price of approximately $16.75, a 32.5% premium to the last sale of $12.64. Net proceeds are estimated at $122 million, or $141 million if the greenshoe is fully exercised, and will be used for general corporate purposes including repaying credit agreement borrowings. The upsizing and premium conversion price suggest stronger-than-expected demand, but the offering remains dilutive and follows a Q1 loss of $1.11 per share and a preliminary Q2 net loss of $23–26 million. The company is shoring up liquidity amid severe operational headwinds.
At the time of this announcement, WNC was trading at $11.75 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $514.1M. The 52-week trading range was $6.63 to $14.32. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.