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.
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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.
The money will be used to repay debt of the company and its three subsidiaries, Asche said.
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.
For the full story, see the June 26 print edition of Transport Topics. .
