ASTEC INDUSTRIES INCASTE
ASTEC INDUSTRIES INC Debt Disclosure
Debt
On July 1, 2025 (the "Financing Effective Date"), the Company entered into the 2025 Credit Agreement with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto from time to time 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 $600.0 million and (ii) an incremental facilities limit in an aggregate amount not to exceed $150.0 million (collectively, the "2025 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 2025 Credit Agreement. On the Financing Effective Date, the Company used the proceeds from the term loan facility, together with cash on hand, to (i) finance the Acquisition, (ii) repay existing indebtedness of the Company and its subsidiaries, including repayment of all amounts outstanding under the previous 2022 Credit Facilities, and (iii) the payment of transaction expenses incurred in connection with the Acquisition and the 2025 Credit Facilities.
At the Company’s election, revolving credit loans and term loans advanced under the 2025 Credit Agreement 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 2025 Credit Agreement) at the relevant time.
The obligations of the Company in respect of the 2025 Credit Facilities are secured and are guaranteed by the U.S. domestic subsidiaries of the Company, subject to customary exceptions.
The 2025 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 will also be 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 2025 Credit Agreement, and (ii) Consolidated Interest Coverage Ratio (as defined in the 2025 Credit Agreement) of at least 2.50 to 1.00 as of the last day of any fiscal quarter. The 2025 Credit Agreement also contains customary representations and warranties.
The 2025 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 2025 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 will be required to repay the loans outstanding under the 2025 Credit Facilities.
Additional details for the 2025 Credit Facilities and the previous 2022 Credit Facilities are summarized below:
| December 31, 2025 | December 31, 2024 | |||||||||||||
| (in millions, except maturity date) | 2025 Credit Facilities | 2022 Credit Facilities | ||||||||||||
| Revolving Line of Credit | ||||||||||||||
| Line of credit - maximum | $ | 250.0 | $ | 250.0 | ||||||||||
| Letters of credit - maximum | 30.0 | 30.0 | ||||||||||||
| Borrowings outstanding | — | 105.0 | ||||||||||||
| Amount of letters of credit outstanding | 5.3 | 5.2 | ||||||||||||
| Line of credit, additional borrowing capacity | 244.7 | 139.8 | ||||||||||||
| Unamortized debt issuance costs | ||||||||||||||
"Prepaid expenses and other assets" | 0.9 | 0.3 | ||||||||||||
"Other long-term assets" | 3.0 | 0.6 | ||||||||||||
| Term Loan | ||||||||||||||
| Current maturities | $ | 17.5 | ||||||||||||
| Long-term maturities | 323.8 | |||||||||||||
| Maturity date | July 1, 2030 | |||||||||||||
| Unamortized debt issuance costs | ||||||||||||||
"Current maturities of long-term debt" | 1.3 | |||||||||||||
"Long-term debt" | 4.2 | |||||||||||||
Debt maturities for the Company's long-term debt are expected to be as follows:
| (in millions) | Maturity Amounts | ||||
| 2026 | $ | 17.5 | |||
| 2027 | 21.9 | ||||
| 2028 | 30.6 | ||||
| 2029 | 35.0 | ||||
| 2030 | 236.3 | ||||
Additionally, certain of the Company's international subsidiaries in Australia, Brazil, Canada, South Africa and the United Kingdom each have separate credit facilities with local financial institutions primarily to finance short-term working capital needs, as well as to cover foreign exchange contracts, performance letters of credit, advance payment and retention guarantees. In addition, the Brazilian subsidiary also enters into order anticipation agreements on a periodic basis. Both the outstanding borrowings under the credit facilities of the international subsidiaries and the order anticipation agreements are recorded in "Short-term debt" in the Company's Consolidated Balance Sheets. Each of the credit facilities are generally guaranteed by Astec Industries, Inc. and/or secured with certain assets of the local subsidiary.
Details for the Company's international credit facilities are summarized below:
| (in millions, except interest rates) | December 31, 2025 | December 31, 2024 | ||||||||||||
| Total credit line | $ | 23.4 | $ | 23.4 | ||||||||||
| Available credit line | 11.4 | 9.5 | ||||||||||||
| Letters of credit - maximum | 13.5 | 12.7 | ||||||||||||
| Amount of letters of credit outstanding | 3.0 | 2.9 | ||||||||||||
| Short-term debt | 12.1 | 13.3 | ||||||||||||
| Weighted average interest rate | 10.62% | 9.02% | ||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 17, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.