Trailer Investments will invest $35 million in Wabash National as part of a securities purchase agreement.
Trailer Investments was formed for this purpose by Lincolnshire Equity Fund III, a private equity investment fund managed by Lincolnshire Management.

According to the agreement, Trailer Investments will purchase $20 million of Series E redeemable preferred stock, $5 million worth of Series F redeemable preferred stock, and $10 million of Series G redeemable preferred stock. Trailer Investments will also receive a warrant that is immediately exercisable at 1 cent per share for a number of newly issued shares of common stock representing 44.21 percent of the issued and outstanding common stock of the company.

The agreement also states that Trailer Investments will have the ability to name five out of 12 members to the company's board of directors. Other rights include the right to information delivery and access to information and management of the company, and veto rights over certain significant matters of the company's operations and business.

"This capital infusion will fortify our balance sheet, allowing us to put in place a capital structure that meets the needs of the company during this economic downturn, including to obtain needed accommodations under our existing credit agreement," said Dick Giromini, Wabash National president and CEO. "Having conducted a thorough process to evaluate strategic alternatives, we believe that this transaction is a necessary and effective step to protect the interests of our existing stockholders, and we look forward to working with Lincolnshire Management in the future."

The company has also entered into an Amended and Restated Loan and Security Agreement, which amends and restates the company's current revolving credit facility. The new credit agreement will allow for borrowings of up to $100 million.