UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
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On January 13, 2021, Houston Wire & Cable Company ("HWCC") issued a press release announcing that it had entered into a definitive Asset Purchase Agreement to sell its Southwest Wire Rope division for $5 million in cash, subject to a post-closing working capital adjustment. The sale excludes approximately $2.6 million of trade accounts receivable, which HWCC will retain. A copy of the press release is attached as Exhibit 99.1.
(d) Exhibits
Exhibit Number | Description | |
99.1 | Press release dated January 13, 2021. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HOUSTON WIRE & CABLE COMPANY | ||
Date: January 14, 2021 | By: | /s/ James L. Pokluda III |
James L. Pokluda III | ||
President and Chief Executive Officer | ||
EXHIBIT 99.1
Houston Wire & Cable Company to Sell Southwest Wire Rope Division, Use Proceeds to Reduce Revolver Debt
HOUSTON, Jan. 13, 2021 (GLOBE NEWSWIRE) -- Houston Wire & Cable Company (Nasdaq: HWCC) today announced that it has entered into a definitive asset purchase agreement for the sale of its Southwest Wire Rope business, a leading provider of lifting slings and wire rope and rigging products, for a purchase price of $5 million, subject to a working capital adjustment. The sale excludes approximately $2.6 million of trade accounts receivable, which HWCC will retain. HWCC expects to use the net sales proceeds and accounts receivable collections to further reduce Revolver debt. HWCC has already reduced Revolver debt to approximately $21.4 million as of January 13, 2021, from a peak of $95.2 million in the first quarter of 2020.
James L. Pokluda III, HWCC President & CEO commented, “Southwest Wire Rope is a company that for over fifty years has been a leading supplier of quality lifting slings, wire rope and rigging supplies to the lifting industry. We wish them much success in the future. Proceeds from the sales of Southern Wire and Southwest Wire Rope allow us to reduce debt, which lessens financial risk in these uncertain times.”
The transaction is subject to customary closing conditions and is expected to close in the first quarter.
About the Company
With 45 years’ experience in the industry, Houston Wire & Cable Company, an industrial distributor, is a large provider of products in the U.S. market. Headquartered in Houston, Texas, the Company has sales and distribution facilities strategically located throughout the United States.
Standard stock items available for immediate delivery include continuous and interlocked armor cable; instrumentation cable; medium voltage cable; high temperature wire; portable cord; power cable; primary and secondary aluminum distribution cable; private branded products, including LifeGuard, a low-smoke, zero-halogen cable; mechanical wire and cable and related hardware, including wire rope, lifting products and synthetic rope and slings; corrosion resistant fasteners, hose clamps, and rivets.
Comprehensive value-added services include same-day shipping, knowledgeable sales staff, inventory management programs, just-in-time delivery, logistics support, customized online ordering capabilities and 24/7/365 service.
Source: Houston Wire & Cable Company
CONTACT:
Eric W. Davis
Chief Financial Officer
Direct: 713.609.2177
Fax: 713.609.2168
edavis@houwire.com
Cover |
Jan. 13, 2021 |
---|---|
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Jan. 13, 2021 |
Entity File Number | 000-52046 |
Entity Registrant Name | HOUSTON WIRE & CABLE COMPANY |
Entity Central Index Key | 0001356949 |
Entity Tax Identification Number | 36-4151663 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 10201 North Loop East |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77029 |
City Area Code | 713 |
Local Phone Number | 609-2100 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, par value $0.001 per share |
Trading Symbol | HWCC |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
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