Astec Industries Inc. has announced that as a part of the organizational streamlining program discussed during the third quarter earnings release conference call on October 17, the company has elected to exit its equipment financing business conducted through Astec Financial Services Inc. and is no longer entering into new equipment financing arrangements with its customers.
The company is in the process of negotiating to sell the current portfolio of commercial paper to unaffiliated third parties and is analyzing bids received in connection with such efforts. The company also is in discussions with unaffiliated third parties to provide ongoing financing services to customers of the company’s manufacturing subsidiaries, which was the company’s practice before forming Astec Financial Services Inc. Proceeds from normal payoffs or portfolio sales will be used for working capital and to reduce the Company’s long-term debt.
The company also announced that the anticipated sale of its Trencor facility, originally announced on July 18, 2002, will not close in the fourth quarter of 2002, as originally anticipated because the buyer was unable to finalize financing arrangements and close within the time prescribed in the sales agreement. While discussions continue with the original buyer, the company is presently in discussions with other prospective buyers concerning the property.
Astec Industries Inc., based in Chattanooga, TN, is a manufacturer of asphalt mixing plants; asphalt paving equipment; asphalt analyzing and recycling equipment; heat transfer equipment; aggregate processing equipment; excavating and trenching equipment; and underground directional drilling equipment.
For more information, visit www.astecindustries.com
