Houston Wire & Cable Co. (Nasdaq: HWCC), Houston, Texas, on Monday announced that it completed the sale of its Southwest Wire Rope business in an asset transaction for $5 million.
The sale excluded approximately $2.9 million of trade accounts receivable, which HWCC retained. HWCC used the net sales proceeds of approximately $3.4 million to further reduce revolver debt.
“We are pleased that we were able to complete the sale of Southwest Wire Rope and, as communicated in prior releases, applied all sale transaction proceeds towards the reduction of debt,” said James L. Pokluda III, HWCC president and CEO. “The company has made remarkable revolver debt reduction progress over the last 12 months. Including the $3.4 million received, and collection of the estimated $2.9 million of trade accounts receivable, we estimate proforma revolver debt to be $15.4 million, which is a reduction of $70.5 million versus the close of the first quarter 2020.”