A month after buying Airxcel for $750 million, Thor Industries Inc. announced plans to raise funds through debt issuance.
Thor announced its intention to offer, subject to market and other conditions, $400 million aggregate principal amount of senior unsecured notes, due 2029.
The company said it intends to use the net proceeds from the offering, together with cash on hand, to repay a portion of the borrowings outstanding on its asset-based revolving credit facility and for the payment of fees and expenses.
Thor said its Sept. 1 Airxcel acquisition was funded through a combination of cash-on-hand and $625 million from Thor’s expanded Asset-Based Credit Facility (ABL). In conjunction with the acquisition, Thor expanded its ABL from $750 million to $1 billion.
“Consistent with our stated capital allocation priorities, we expect to remain focused on paying down our outstanding debt balances from future net cash generated from operations,” Thor Chief Financial Officer Colleen Zuhl said after the Airxcel purchase.
The notes will rank equally in right of payment with all of Thor’s existing and future senior indebtedness, the company stated, and senior to Thor’s future subordinated indebtedness. The notes will be effectively junior in right of payment to Thor’s existing and future secured indebtedness to the extent of the assets securing such indebtedness.
