Asche Gets $7M Infusion
Asche Transportation Services, the Shannon, Ill.-based parent of two refrigerated truckload carriers and a company that hauls municipal solid waste, said it has struck a deal with Churchill Environmental & Industrial Equity Partners to get $7 million in exchange for promissory notes that could give Churchill eventual majority ownership in Asche.
The transaction was approved by Asche’s board of directors June 16. Under terms of the deal, Churchill will provide $7 million to Specialty Transportation Service, the Asche subsidiary that hauls garbage from consolidation points to landfills. STS, in turn, would make an intercompany loan to Asche of $2.25 million.
In return, Churchill would receive a subordinated promissory note convertible into at least 70% and not more than 85% of the outstanding stock of STS and a five-year warrant to purchase shares in Asche. The warrants, if exercised, would result in Churchill owning 53% of Asche’s outstanding common stock. Churchill currently owns 28% of Asche’s stock.
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The money will be used to repay debt of the company and its three subsidiaries, Asche said.
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For the full story, see the June 26 print edition of Transport Topics. Subscribe today.
