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Cedar Falls, Iowa
May 15, 2003
Ag Services of America
(NYSE: ASV
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News)
announced today that the Company has in place a credit facility
consisting of a bank line of credit and participations that will
allow the Company to approve approximately $250 million in loan
commitments for the 2003 crop season. This compares to last
year's loan commitments of $465 million. As a result, the
Company has not been able to provide financing for many of its
former customers this year. In response to this smaller
portfolio the Company is taking certain cost cutting measures
including, among other things, a reduction in its workforce of
approximately 30%.
The Company continues to work towards the closing of its
previously announced transaction with American Securities
Capital Partners, L.P. (ASCP). The Company and ASCP entered into
a definitive agreement on February 24, 2003. The transaction
contemplated by this agreement requires the approval of the
Company's shareholders. Proxy materials for this meeting have
been filed with the Securities Exchange Commission (SEC). The
Company anticipates setting a meeting date and mailing proxy
materials soon, although no assurances can be made that the
transaction will be approved and/or consummated. As previously
announced the Company continues to use Rabobank as its financial
advisor.
American Securities Capital Partners is the private-equity
investment arm of American Securities, a family office founded
in 1947 by the late William Rosenwald, to manage his share of
his family's Sears Roebuck fortune. ASCP is currently investing
its third private-equity investment fund with outside investors,
a fund with commitments of $650 million that was raised in 2001.
(See
www.american-securities.com.)
Ag Services of America, Inc. is based in Cedar Falls, Iowa,
and is a leading supplier of crop input financing and
agricultural inputs, including seed, chemicals and fertilizers
to primarily corn and soybean growers in the U.S. The Company's
one-stop shopping business model includes competitive and
flexible financing packages through its AgriFlex Credit® program
combined with the most comprehensive offering of agricultural
inputs from national sources such as Asgrow, BASF, Dekalb, Dow
AgroSciences, DuPont, Garst, Monsanto, Syngenta and Pioneer
Hi-Bred. The Company also administers additional financing
programs for various suppliers, manufacturers and distributors
in the agriculture industry and provides ancillary services such
as crop insurance and grain marketing.
AgriFlex Credit is a registered trademark of Ag Services of
America, Inc. All other trademarks or product names are the
property of their respective owners.
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