Wabash is moving to accelerate the availability of its Trailers-as-a-Service (TaaS) offering.
The trailer manufacturer recently disclosed an amendment to its asset-backed lending facility that increased the total credit facility to $350 million and created additional liquidity of up to $125 million it says will be used to pursue the initiative.
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, the company said.
“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 the amended credit agreement, and based on current eligible assets, liquidity increased approximately $100 million, Wabash reported. The agreement extends the scheduled maturity to Sept. 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.”