[8-K] Astec Industries Inc Reports Material Event
Astec Industries, Inc. (NASDAQ: ASTE) filed an 8-K to report the July 1, 2025 closing of its $245 million cash acquisition of TerraSource Holdings, LLC. The purchase was effected through a Membership Interest Purchase Agreement signed on April 28, 2025 and was completed on a cash-free, debt-free basis, subject to customary post-closing adjustments.
To fund the deal and strengthen liquidity, Astec simultaneously entered into a new $600 million senior secured credit agreement with Wells Fargo as administrative agent. The facilities comprise revolving, term-loan, swingline and letter-of-credit tranches, plus an incremental accordion of up to $150 million. Proceeds from the term loan, combined with cash on hand, financed the acquisition, repaid all borrowings under the company’s prior $250 million revolver (terminated at closing), and covered transaction fees.
Key financing terms: (i) maturity on July 1, 2030; (ii) borrower option of Term SOFR +1.75%-2.75% or Base Rate +0.75%-1.75%, with pricing and commitment fees (0.15%-0.35%) tied to the company’s Consolidated Total Net Leverage Ratio; (iii) secured guarantees from U.S. domestic subsidiaries. Covenants require a Net Leverage Ratio ≤3.50× (up to 4.00× following certain acquisitions) and an Interest Coverage Ratio ≥2.50×, alongside customary negative covenants and change-of-control repayment triggers.
Astec intends to file the required historical and pro forma financial statements for TerraSource within 71 days. A press release announcing the closing was furnished under Item 7.01.
The transaction materially expands Astec’s business while increasing funded debt and related covenant obligations, making the development impactful to investors.
Astec Industries, Inc. (NASDAQ: ASTE) ha presentato un modulo 8-K per comunicare la chiusura, avvenuta il 1° luglio 2025, dell'acquisizione in contanti da 245 milioni di dollari di TerraSource Holdings, LLC. L'acquisto è stato realizzato tramite un Accordo di Acquisto di Quote Sociali firmato il 28 aprile 2025 e completato su base cash-free e debt-free, soggetto a consueti aggiustamenti post-chiusura.
Per finanziare l'operazione e rafforzare la liquidità, Astec ha contestualmente stipulato un nuovo accordo di credito senior garantito da 600 milioni di dollari con Wells Fargo come agente amministrativo. Le linee di credito comprendono tranche revolving, prestito a termine, swingline e lettere di credito, oltre a un'opzione incrementale fino a 150 milioni di dollari. I proventi del prestito a termine, uniti alla liquidità disponibile, hanno finanziato l'acquisizione, estinto tutti i debiti relativi alla linea di credito revolving precedente da 250 milioni di dollari (terminata alla chiusura) e coperto le spese di transazione.
Termini chiave del finanziamento: (i) scadenza il 1° luglio 2030; (ii) opzione per il mutuatario tra Term SOFR +1,75%-2,75% o Base Rate +0,75%-1,75%, con commissioni di pricing e impegno (0,15%-0,35%) legate al Rapporto Consolidato Totale di Leva Finanziaria; (iii) garanzie garantite da sussidiarie statunitensi. I covenant prevedono un Rapporto di Leva Finanziaria Netto ≤3,50× (fino a 4,00× dopo alcune acquisizioni) e un Rapporto di Copertura degli Interessi ≥2,50×, oltre a consueti divieti negativi e clausole di rimborso in caso di cambio di controllo.
Astec intende presentare entro 71 giorni i bilanci storici e pro forma di TerraSource richiesti. Un comunicato stampa che annuncia la chiusura è stato fornito ai sensi dell'Item 7.01.
L’operazione amplia significativamente il business di Astec aumentando il debito finanziato e gli obblighi di covenant correlati, rendendo lo sviluppo rilevante per gli investitori.
Astec Industries, Inc. (NASDAQ: ASTE) presentó un formulario 8-K para informar el cierre el 1 de julio de 2025 de su adquisición en efectivo de 245 millones de dólares de TerraSource Holdings, LLC. La compra se efectuó mediante un Acuerdo de Compra de Intereses de Membresía firmado el 28 de abril de 2025 y se completó en una base libre de efectivo y deuda, sujeto a ajustes post-cierre habituales.
Para financiar la operación y fortalecer la liquidez, Astec simultáneamente celebró un nuevo acuerdo de crédito senior garantizado por 600 millones de dólares con Wells Fargo como agente administrativo. Las facilidades incluyen tramos revolventes, préstamos a plazo, swingline y cartas de crédito, además de una opción incremental de hasta 150 millones de dólares. Los ingresos del préstamo a plazo, combinados con el efectivo disponible, financiaron la adquisición, pagaron todos los préstamos bajo la línea revolvente anterior de 250 millones de dólares (terminada al cierre) y cubrieron las tarifas de la transacción.
Términos clave del financiamiento: (i) vencimiento el 1 de julio de 2030; (ii) opción del prestatario entre Term SOFR +1.75%-2.75% o Base Rate +0.75%-1.75%, con tarifas de precio y compromiso (0.15%-0.35%) vinculadas a la Ratio Consolidada Total de Apalancamiento Neto; (iii) garantías aseguradas de subsidiarias domésticas de EE.UU. Los convenios requieren una Ratio de Apalancamiento Neto ≤3.50× (hasta 4.00× tras ciertas adquisiciones) y una Ratio de Cobertura de Intereses ≥2.50×, junto con convenios negativos habituales y cláusulas de reembolso por cambio de control.
Astec tiene la intención de presentar los estados financieros históricos y pro forma requeridos para TerraSource dentro de 71 días. Un comunicado de prensa anunciando el cierre fue presentado bajo el Ítem 7.01.
La transacción amplía materialmente el negocio de Astec mientras incrementa la deuda financiada y las obligaciones de convenios relacionadas, haciendo que el desarrollo sea significativo para los inversores.
Astec Industries, Inc. (NASDAQ: ASTE)는 2025년 7월 1일에 TerraSource Holdings, LLC를 2억 4,500만 달러 현금으로 인수 완료했음을 보고하기 위해 8-K를 제출했습니다. 이번 인수는 2025년 4월 28일에 체결된 회원 지분 매매 계약을 통해 이루어졌으며, 현금 및 부채가 없는 상태에서 통상적인 거래 후 조정을 조건으로 완료되었습니다.
거래 자금 조달 및 유동성 강화를 위해 Astec는 동시에 Wells Fargo를 행정 대리인으로 하는 6억 달러 규모의 선순위 담보 신용 계약을 체결했습니다. 이 신용 시설은 회전 대출, 기한 대출, 스윙라인, 신용장 트랜치 및 최대 1억 5,000만 달러의 증액 옵션을 포함합니다. 기한 대출 수익과 현금을 결합하여 인수를 자금 조달하고, 이전 2억 5,000만 달러 회전 신용 대출을 모두 상환(종료)했으며, 거래 수수료도 충당했습니다.
주요 금융 조건: (i) 만기일은 2030년 7월 1일; (ii) 차입자는 Term SOFR +1.75%-2.75% 또는 기준금리(Base Rate) +0.75%-1.75% 중 선택 가능하며, 가격 및 약정 수수료(0.15%-0.35%)는 회사의 통합 총 순부채비율에 연동됨; (iii) 미국 내 자회사의 담보 보증. 약정은 순부채비율 ≤3.50×(특정 인수 후 최대 4.00×), 이자보상배율 ≥2.50×를 요구하며, 일반적인 부정 약정 및 지배권 변경 시 상환 조건도 포함됩니다.
Astec는 71일 이내에 TerraSource에 대한 과거 및 프로포마 재무제표를 제출할 계획입니다. 거래 완료를 알리는 보도자료는 항목 7.01에 따라 제출되었습니다.
이번 거래는 Astec의 사업을 크게 확장하는 동시에 자금 조달 부채와 관련 약정 의무를 증가시켜 투자자에게 중요한 영향을 미칩니다.
Astec Industries, Inc. (NASDAQ : ASTE) a déposé un formulaire 8-K pour annoncer la clôture au 1er juillet 2025 de son acquisition en numéraire de 245 millions de dollars de TerraSource Holdings, LLC. L'achat a été réalisé via un accord d'achat d'intérêts de membres signé le 28 avril 2025 et a été finalisé sur une base sans liquidités ni dettes, sous réserve des ajustements post-clôture habituels.
Pour financer cette opération et renforcer sa liquidité, Astec a simultanément conclu un nouvel accord de crédit senior garanti de 600 millions de dollars avec Wells Fargo en tant qu'agent administratif. Les facilités comprennent des tranches renouvelables, des prêts à terme, des lignes swingline et des lettres de crédit, ainsi qu'une option d'extension allant jusqu'à 150 millions de dollars. Les fonds issus du prêt à terme, combinés à la trésorerie disponible, ont permis de financer l'acquisition, de rembourser tous les emprunts sous l'ancienne ligne de crédit renouvelable de 250 millions de dollars (clôturée à la finalisation) et de couvrir les frais de transaction.
Principaux termes du financement : (i) échéance au 1er juillet 2030 ; (ii) option pour l'emprunteur entre Term SOFR +1,75%-2,75% ou taux de base +0,75%-1,75%, avec des frais de tarification et d'engagement (0,15%-0,35%) liés au ratio consolidé de levier net de la société ; (iii) garanties sécurisées fournies par des filiales américaines. Les engagements exigent un ratio de levier net ≤3,50× (jusqu'à 4,00× suite à certaines acquisitions) et un ratio de couverture des intérêts ≥2,50×, ainsi que des engagements négatifs habituels et des clauses de remboursement en cas de changement de contrôle.
Astec prévoit de déposer dans les 71 jours les états financiers historiques et pro forma requis pour TerraSource. Un communiqué de presse annonçant la clôture a été fourni conformément à l'Item 7.01.
Cette transaction élargit considérablement l'activité d'Astec tout en augmentant la dette financée et les obligations liées aux engagements, rendant cet événement significatif pour les investisseurs.
Astec Industries, Inc. (NASDAQ: ASTE) hat eine 8-K-Meldung eingereicht, um den Abschluss der 245 Millionen US-Dollar Barakquisition von TerraSource Holdings, LLC am 1. Juli 2025 zu berichten. Der Kauf erfolgte durch einen am 28. April 2025 unterzeichneten Mitgliedschaftsanteils-Kaufvertrag und wurde auf einer bar- und schuldenfreien Basis abgeschlossen, vorbehaltlich üblicher nachvertraglicher Anpassungen.
Zur Finanzierung des Deals und zur Stärkung der Liquidität hat Astec gleichzeitig eine neue 600 Millionen US-Dollar Senior Secured Kreditvereinbarung mit Wells Fargo als administrativem Agenten abgeschlossen. Die Kreditfazilitäten umfassen revolvierende, Terminkredit-, Swingline- und Akkreditivtranchen sowie eine zusätzliche Akkordeonoption von bis zu 150 Millionen US-Dollar. Die Erlöse aus dem Terminkredit, kombiniert mit vorhandenen Barmitteln, finanzierten die Akquisition, tilgten alle Verbindlichkeiten aus der vorherigen revolvierenden Kreditlinie des Unternehmens in Höhe von 250 Millionen US-Dollar (die zum Abschluss beendet wurde) und deckten Transaktionsgebühren ab.
Wichtige Finanzierungsbedingungen: (i) Fälligkeit am 1. Juli 2030; (ii) Darlehensnehmeroption zwischen Term SOFR +1,75%-2,75% oder Basiszinssatz +0,75%-1,75%, mit Preis- und Verpflichtungsgebühren (0,15%-0,35%), die an das konsolidierte Netto-Leverage-Verhältnis des Unternehmens gebunden sind; (iii) gesicherte Garantien von US-amerikanischen Tochtergesellschaften. Auflagen verlangen ein Netto-Leverage-Verhältnis ≤3,50× (bis zu 4,00× nach bestimmten Akquisitionen) und eine Zinsdeckungsquote ≥2,50× sowie übliche Negativauflagen und Rückzahlungsbedingungen bei Kontrollwechsel.
Astec beabsichtigt, die erforderlichen historischen und pro forma Finanzberichte für TerraSource innerhalb von 71 Tagen einzureichen. Eine Pressemitteilung zur Bekanntgabe des Abschlusses wurde unter Punkt 7.01 bereitgestellt.
Die Transaktion erweitert das Geschäft von Astec erheblich, erhöht jedoch auch die finanzierte Verschuldung und die damit verbundenen Auflagen, was die Entwicklung für Investoren bedeutsam macht.
- Completion of $245 million TerraSource acquisition, advancing Astec's stated strategic growth initiatives.
- Secured new $600 million multi-tranche credit facilities with an additional $150 million accordion, materially expanding liquidity.
- Higher secured debt load with leverage covenant up to 3.5× (4.0× post-acquisition) increases financial risk.
- Floating-rate interest structure subjects Astec to rate volatility through 2030 maturity.
Insights
TL;DR: Transformative $245 M acquisition financed by new $600 M credit; strategic growth outweighs higher leverage—overall positive.
The closing of TerraSource adds a complementary business line at a clear, disclosed price while retiring the outdated $250 M revolver and replacing it with larger, more flexible facilities. The credit agreement’s 5-year tenor, sizeable accordion, and pricing grid tied to leverage give Astec room to integrate TerraSource and pursue further growth. Although leverage could rise toward the 3.5× ceiling, the company negotiated covenants providing temporary headroom up to 4.0× for future M&A, signalling lender confidence. Because the financing is long-dated and partially revolver-based, near-term cash requirements remain manageable. Overall, the filing signals decisive execution of a strategic acquisition with sufficient liquidity, a clear positive for shareholders.
TL;DR: Larger secured facility boosts liquidity but raises leverage risk; impact medium, skewed neutral.
The $600 M facility—over twice the size of the previous revolver—improves liquidity yet introduces higher secured debt ranking ahead of existing unsecured claims. Interest is floating (SOFR/Base), exposing Astec to rate volatility at a time of elevated benchmarks. The covenant package is conventional but still tight: Net Leverage ≤3.5× and Interest Coverage ≥2.5× leave limited margin for operational underperformance post-acquisition. Mandatory repayment upon change of control and standard cross-default provisions increase event risk. While the long-dated maturity (2030) mitigates refinancing pressure, investors should monitor leverage progression and compliance. Hence, the overall credit impact is balanced—neither strongly positive nor negative.
Astec Industries, Inc. (NASDAQ: ASTE) ha presentato un modulo 8-K per comunicare la chiusura, avvenuta il 1° luglio 2025, dell'acquisizione in contanti da 245 milioni di dollari di TerraSource Holdings, LLC. L'acquisto è stato realizzato tramite un Accordo di Acquisto di Quote Sociali firmato il 28 aprile 2025 e completato su base cash-free e debt-free, soggetto a consueti aggiustamenti post-chiusura.
Per finanziare l'operazione e rafforzare la liquidità, Astec ha contestualmente stipulato un nuovo accordo di credito senior garantito da 600 milioni di dollari con Wells Fargo come agente amministrativo. Le linee di credito comprendono tranche revolving, prestito a termine, swingline e lettere di credito, oltre a un'opzione incrementale fino a 150 milioni di dollari. I proventi del prestito a termine, uniti alla liquidità disponibile, hanno finanziato l'acquisizione, estinto tutti i debiti relativi alla linea di credito revolving precedente da 250 milioni di dollari (terminata alla chiusura) e coperto le spese di transazione.
Termini chiave del finanziamento: (i) scadenza il 1° luglio 2030; (ii) opzione per il mutuatario tra Term SOFR +1,75%-2,75% o Base Rate +0,75%-1,75%, con commissioni di pricing e impegno (0,15%-0,35%) legate al Rapporto Consolidato Totale di Leva Finanziaria; (iii) garanzie garantite da sussidiarie statunitensi. I covenant prevedono un Rapporto di Leva Finanziaria Netto ≤3,50× (fino a 4,00× dopo alcune acquisizioni) e un Rapporto di Copertura degli Interessi ≥2,50×, oltre a consueti divieti negativi e clausole di rimborso in caso di cambio di controllo.
Astec intende presentare entro 71 giorni i bilanci storici e pro forma di TerraSource richiesti. Un comunicato stampa che annuncia la chiusura è stato fornito ai sensi dell'Item 7.01.
L’operazione amplia significativamente il business di Astec aumentando il debito finanziato e gli obblighi di covenant correlati, rendendo lo sviluppo rilevante per gli investitori.
Astec Industries, Inc. (NASDAQ: ASTE) presentó un formulario 8-K para informar el cierre el 1 de julio de 2025 de su adquisición en efectivo de 245 millones de dólares de TerraSource Holdings, LLC. La compra se efectuó mediante un Acuerdo de Compra de Intereses de Membresía firmado el 28 de abril de 2025 y se completó en una base libre de efectivo y deuda, sujeto a ajustes post-cierre habituales.
Para financiar la operación y fortalecer la liquidez, Astec simultáneamente celebró un nuevo acuerdo de crédito senior garantizado por 600 millones de dólares con Wells Fargo como agente administrativo. Las facilidades incluyen tramos revolventes, préstamos a plazo, swingline y cartas de crédito, además de una opción incremental de hasta 150 millones de dólares. Los ingresos del préstamo a plazo, combinados con el efectivo disponible, financiaron la adquisición, pagaron todos los préstamos bajo la línea revolvente anterior de 250 millones de dólares (terminada al cierre) y cubrieron las tarifas de la transacción.
Términos clave del financiamiento: (i) vencimiento el 1 de julio de 2030; (ii) opción del prestatario entre Term SOFR +1.75%-2.75% o Base Rate +0.75%-1.75%, con tarifas de precio y compromiso (0.15%-0.35%) vinculadas a la Ratio Consolidada Total de Apalancamiento Neto; (iii) garantías aseguradas de subsidiarias domésticas de EE.UU. Los convenios requieren una Ratio de Apalancamiento Neto ≤3.50× (hasta 4.00× tras ciertas adquisiciones) y una Ratio de Cobertura de Intereses ≥2.50×, junto con convenios negativos habituales y cláusulas de reembolso por cambio de control.
Astec tiene la intención de presentar los estados financieros históricos y pro forma requeridos para TerraSource dentro de 71 días. Un comunicado de prensa anunciando el cierre fue presentado bajo el Ítem 7.01.
La transacción amplía materialmente el negocio de Astec mientras incrementa la deuda financiada y las obligaciones de convenios relacionadas, haciendo que el desarrollo sea significativo para los inversores.
Astec Industries, Inc. (NASDAQ: ASTE)는 2025년 7월 1일에 TerraSource Holdings, LLC를 2억 4,500만 달러 현금으로 인수 완료했음을 보고하기 위해 8-K를 제출했습니다. 이번 인수는 2025년 4월 28일에 체결된 회원 지분 매매 계약을 통해 이루어졌으며, 현금 및 부채가 없는 상태에서 통상적인 거래 후 조정을 조건으로 완료되었습니다.
거래 자금 조달 및 유동성 강화를 위해 Astec는 동시에 Wells Fargo를 행정 대리인으로 하는 6억 달러 규모의 선순위 담보 신용 계약을 체결했습니다. 이 신용 시설은 회전 대출, 기한 대출, 스윙라인, 신용장 트랜치 및 최대 1억 5,000만 달러의 증액 옵션을 포함합니다. 기한 대출 수익과 현금을 결합하여 인수를 자금 조달하고, 이전 2억 5,000만 달러 회전 신용 대출을 모두 상환(종료)했으며, 거래 수수료도 충당했습니다.
주요 금융 조건: (i) 만기일은 2030년 7월 1일; (ii) 차입자는 Term SOFR +1.75%-2.75% 또는 기준금리(Base Rate) +0.75%-1.75% 중 선택 가능하며, 가격 및 약정 수수료(0.15%-0.35%)는 회사의 통합 총 순부채비율에 연동됨; (iii) 미국 내 자회사의 담보 보증. 약정은 순부채비율 ≤3.50×(특정 인수 후 최대 4.00×), 이자보상배율 ≥2.50×를 요구하며, 일반적인 부정 약정 및 지배권 변경 시 상환 조건도 포함됩니다.
Astec는 71일 이내에 TerraSource에 대한 과거 및 프로포마 재무제표를 제출할 계획입니다. 거래 완료를 알리는 보도자료는 항목 7.01에 따라 제출되었습니다.
이번 거래는 Astec의 사업을 크게 확장하는 동시에 자금 조달 부채와 관련 약정 의무를 증가시켜 투자자에게 중요한 영향을 미칩니다.
Astec Industries, Inc. (NASDAQ : ASTE) a déposé un formulaire 8-K pour annoncer la clôture au 1er juillet 2025 de son acquisition en numéraire de 245 millions de dollars de TerraSource Holdings, LLC. L'achat a été réalisé via un accord d'achat d'intérêts de membres signé le 28 avril 2025 et a été finalisé sur une base sans liquidités ni dettes, sous réserve des ajustements post-clôture habituels.
Pour financer cette opération et renforcer sa liquidité, Astec a simultanément conclu un nouvel accord de crédit senior garanti de 600 millions de dollars avec Wells Fargo en tant qu'agent administratif. Les facilités comprennent des tranches renouvelables, des prêts à terme, des lignes swingline et des lettres de crédit, ainsi qu'une option d'extension allant jusqu'à 150 millions de dollars. Les fonds issus du prêt à terme, combinés à la trésorerie disponible, ont permis de financer l'acquisition, de rembourser tous les emprunts sous l'ancienne ligne de crédit renouvelable de 250 millions de dollars (clôturée à la finalisation) et de couvrir les frais de transaction.
Principaux termes du financement : (i) échéance au 1er juillet 2030 ; (ii) option pour l'emprunteur entre Term SOFR +1,75%-2,75% ou taux de base +0,75%-1,75%, avec des frais de tarification et d'engagement (0,15%-0,35%) liés au ratio consolidé de levier net de la société ; (iii) garanties sécurisées fournies par des filiales américaines. Les engagements exigent un ratio de levier net ≤3,50× (jusqu'à 4,00× suite à certaines acquisitions) et un ratio de couverture des intérêts ≥2,50×, ainsi que des engagements négatifs habituels et des clauses de remboursement en cas de changement de contrôle.
Astec prévoit de déposer dans les 71 jours les états financiers historiques et pro forma requis pour TerraSource. Un communiqué de presse annonçant la clôture a été fourni conformément à l'Item 7.01.
Cette transaction élargit considérablement l'activité d'Astec tout en augmentant la dette financée et les obligations liées aux engagements, rendant cet événement significatif pour les investisseurs.
Astec Industries, Inc. (NASDAQ: ASTE) hat eine 8-K-Meldung eingereicht, um den Abschluss der 245 Millionen US-Dollar Barakquisition von TerraSource Holdings, LLC am 1. Juli 2025 zu berichten. Der Kauf erfolgte durch einen am 28. April 2025 unterzeichneten Mitgliedschaftsanteils-Kaufvertrag und wurde auf einer bar- und schuldenfreien Basis abgeschlossen, vorbehaltlich üblicher nachvertraglicher Anpassungen.
Zur Finanzierung des Deals und zur Stärkung der Liquidität hat Astec gleichzeitig eine neue 600 Millionen US-Dollar Senior Secured Kreditvereinbarung mit Wells Fargo als administrativem Agenten abgeschlossen. Die Kreditfazilitäten umfassen revolvierende, Terminkredit-, Swingline- und Akkreditivtranchen sowie eine zusätzliche Akkordeonoption von bis zu 150 Millionen US-Dollar. Die Erlöse aus dem Terminkredit, kombiniert mit vorhandenen Barmitteln, finanzierten die Akquisition, tilgten alle Verbindlichkeiten aus der vorherigen revolvierenden Kreditlinie des Unternehmens in Höhe von 250 Millionen US-Dollar (die zum Abschluss beendet wurde) und deckten Transaktionsgebühren ab.
Wichtige Finanzierungsbedingungen: (i) Fälligkeit am 1. Juli 2030; (ii) Darlehensnehmeroption zwischen Term SOFR +1,75%-2,75% oder Basiszinssatz +0,75%-1,75%, mit Preis- und Verpflichtungsgebühren (0,15%-0,35%), die an das konsolidierte Netto-Leverage-Verhältnis des Unternehmens gebunden sind; (iii) gesicherte Garantien von US-amerikanischen Tochtergesellschaften. Auflagen verlangen ein Netto-Leverage-Verhältnis ≤3,50× (bis zu 4,00× nach bestimmten Akquisitionen) und eine Zinsdeckungsquote ≥2,50× sowie übliche Negativauflagen und Rückzahlungsbedingungen bei Kontrollwechsel.
Astec beabsichtigt, die erforderlichen historischen und pro forma Finanzberichte für TerraSource innerhalb von 71 Tagen einzureichen. Eine Pressemitteilung zur Bekanntgabe des Abschlusses wurde unter Punkt 7.01 bereitgestellt.
Die Transaktion erweitert das Geschäft von Astec erheblich, erhöht jedoch auch die finanzierte Verschuldung und die damit verbundenen Auflagen, was die Entwicklung für Investoren bedeutsam macht.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
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Introductory Note
On July 1, 2025, Astec Industries, Inc. (the "Company") completed its previously announced acquisition of TerraSource Holdings, LLC, a Delaware limited liability company (“TerraSource”), pursuant to that certain Membership Interest Purchase Agreement, dated as of April 28, 2025, by and among the Company, TerraSource, RLI TSG Holdings LLC, Milacron LLC and the other seller parties thereto (collectively, the “Sellers”), and RLIH, LLC (the “Sellers’ Representative”) (the “Purchase Agreement” and the transactions contemplated thereby, the “Acquisition”). The events described in this Current Report on Form 8-K (this “Current Report”) are related to the closing of the Acquisition (the “Closing”).
Item 1.01. Entry Into a Material Definitive Agreement.
Simultaneously with the Closing, on July 1, 2025 (the “Financing Effective Date”), the Company entered into a credit agreement (the “Credit Agreement”) that provides for (i) a revolving credit facility, a term loan facility, a swingline facility and a letter of credit facility, in an initial aggregate amount of up to $600,000,000, and (ii) an incremental facilities limit in an aggregate amount not to exceed $150,000,000 (collectively, the “Credit Facilities”).
The Credit Agreement was entered into by and among the Company, as borrower, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto from time to time. The proceeds of (i) the revolving credit facility, letter of credit facility and swingline facility will be used (a) to finance capital expenditures, (b) for working capital and other general corporate purposes of the Company and its subsidiaries, and (c) in the case of letters of credit, for the backstop or replacement of letters of credit existing prior to the Financing Effective Date and to support general corporate purposes, and (ii) the term loan facility will be used on the Financing Effective Date, together with cash on hand, to (a) finance the Acquisition, (b) repay existing indebtedness of the Company and its subsidiaries, including repayment of all amounts outstanding under the Previous Credit Facility (as defined below), and (c) the payment of transaction expenses incurred in connection with the Acquisition and the Credit Facilities.
Loans advanced under the revolving credit facility and the term loan facility must be repaid on (i) July 1, 2030 or (ii) earlier as specified in the Credit Agreement.
At the Company’s election, revolving credit loans and term loans advanced under the Credit Agreement shall bear interest at a rate per annum equal to (i) a forward-looking term rate based on the secured overnight financing rate for the applicable interest period (“Term SOFR”), as selected by the Company, plus an applicable margin ranging between 1.75% and 2.75% per annum, or (ii) the highest of the Wells Fargo Bank, National Association prime rate, the Federal Funds rate plus 0.50%, and Term SOFR for a one month tenor in effect on such day plus 1.00% (“Base Rate”), plus an applicable margin ranging between 0.75% and 1.75% per annum. Swingline loans shall bear interest at the Base Rate, plus an applicable margin ranging between 0.75% and 1.75% per annum.
The Company also pays a commitment fee ranging from 0.15% to 0.35% per annum to the lenders under the revolving credit facility on the average amount by which the aggregate commitments of the lenders exceed utilization of the revolving credit facility. The applicable margins and the commitment fee are determined based on the Company's Consolidated Total Net Leverage Ratio (as defined in the Credit Agreement) at the relevant time.
The obligations of the Company in respect of the Credit Facilities are secured and are guaranteed by the US domestic subsidiaries of the Company, subject to customary exceptions.
The Credit Agreement includes certain affirmative and negative covenants that impose restrictions on the Company's financial and business operations, including limitations on liens, indebtedness, fundamental changes, and changes in the nature of the Company's business. These limitations are subject to customary exceptions. The Company is also required to maintain a (i) Consolidated Total Net Leverage Ratio of not more than 3.50 to 1.00 as of the last day of any fiscal quarter, which may be increased to 4.00 to 1.00 in connection with a material permitted acquisition and subject to the terms of the Credit Agreement, and (ii) Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of at least 2.50 to 1.00 as of the last day of any fiscal quarter. The Credit Agreement also contains customary representations and warranties.
The Credit Agreement contains events of default customary for this type of financing, including a cross default and cross acceleration provision to certain other material indebtedness of the Company and its subsidiaries. Upon the occurrence of an event of default, the outstanding obligations under the Credit Agreement may be accelerated and become due and payable immediately. In addition, if certain change of control events occur with respect to the Company, the Company is required to repay the loans outstanding under the Credit Facilities.
In connection with the entry into the Credit Facilities, the Company (i) repaid all outstanding borrowings under its prior $250 million revolving credit facility pursuant to that certain Credit Agreement, dated as of December 19, 2022, between the Company and Wells Fargo Bank, National Association (the “Previous Credit Facility”), utilizing borrowings under the Credit Facilities, and (ii) terminated the Previous Credit Facility.
The foregoing description of the Credit Agreement is a summary only, does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Credit Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report and is incorporated by reference herein.
Item 2.01. Completion of Acquisition or Disposition of Assets.
As discussed in the Introductory Note, which is incorporated by reference into this Item 2.01, on July 1, 2025, the Company completed its previously announced Acquisition of TerraSource pursuant to the Purchase Agreement. The total consideration delivered at the Closing by the Company to the Sellers was $245.0 million in cash on a cash-free, debt-free basis, subject to a customary purchase price adjustment, as set forth in the Purchase Agreement. The Company financed the Acquisition and related expenses with proceeds from the Credit Facilities.
The foregoing description of the Acquisition and the Purchase Agreement is a summary only, does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Purchase Agreement, a copy of which is filed as Exhibit 2.1 to this Current Report and is incorporated by reference herein.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information provided in Item 1.01 of this Current Report is incorporated by reference herein.
Item 7.01. Regulation FD Disclosure.
On July 1, 2025, the Company issued a press release announcing the Closing of the Acquisition. A copy of the press release is furnished as Exhibit 99.1 to this Current Report and is incorporated by reference herein.
The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will not be incorporated by reference into any filing under the Securities Act or the Exchange Act unless specifically identified therein as being incorporated therein by reference.
Item 9.01. Financial Statements and Exhibits.
| (a) | Financial Statements of Business Acquired. |
The Company intends to file the financial statements required by Item 9.01(a) with respect to the Acquisition described in Item 2.01 of this Current Report by amendment to this Current Report as soon as practicable and, in any event, not later than 71 days after the date on which this Current Report is required to be filed pursuant to Item 2.01.
| (b) | Pro Forma Financial Information. |
The Company intends to file the pro forma financial information required by Item 9.01(b) with respect to the Acquisition described in Item 2.01 of this Current Report by amendment to this Current Report as soon as practicable and, in any event, not later than 71 days after the date on which this Current Report is required to be filed pursuant to Item 2.01.
| (d) | Exhibits. |
| 2.1* | Membership Interest Purchase Agreement, dated April 28, 2025, by and among TerraSource Holdings, LLC, the seller parties thereto, Sellers’ Representative and Astec Industries, Inc. (incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by Astec Industries, Inc. with the Securities and Exchange Commission on May 2, 2025). |
| 10.1* | Credit Agreement, dated as of July 1, 2025, by and among Astec Industries, Inc., as borrower, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto. |
| 99.1 | Press release dated July 1, 2025 |
| 104 | Cover Page Interactive Data File embedded within the Inline XBRL document |
| * Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant will furnish supplementally to the Securities and Exchange Commission upon request a copy of any omitted schedule. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Astec Industries, Inc. | ||
| Date: July 1, 2025 | By: | /s/ Brian J. Harris |
| Brian J. Harris | ||
| Chief Financial Officer | ||
FAQ
What did Astec Industries (ASTE) acquire on July 1, 2025?
How much did Astec pay for TerraSource?
How did Astec finance the TerraSource acquisition?
What are the key covenants in Astec's new credit facilities?
When do the new term loans mature?
Will Astec provide TerraSource financial statements?
