4/17/12 Wabash (WNC)
$150m sen unsec cb coming tonight from MS/WFC. Terms: 6yr, 3.375-3.875% up 32.5-37.5% full pctns. UOP = fund walker acq/gcp. Note: co has option to pay 101 + 75% parity move (theo delta) + accrued if deal fails. Small $621m truck/trailer manufacturer w/have $450m debt > deal w/$300m secured ahead of CB. Combined EBITDA espected to be 85m w/ sales of $1.5B and 5% gross margins. Deal does not jump out at us. We’ll use 35 vol given usual risk on way down Theo = 103.4. Co has option to redeem, it does not have to. Good to see 2 deals coming tonight but there are just too many unknowns & this deal will disappear. We’d avoid. If you are going for it, steer to cheaps.