Houston Wire & Cable cuts revolver debt to $22.6 million

New York, Jan. 6 – Houston Wire & Cable Co. reduced the borrowings on its revolving credit facility to $22.6 million at the end of 2020 from a peak of $95.2 million in the first quarter of last year, according to a news release.

On the final day of 2020, the company closed the sale of its Southern Wire business to Southern Rigging Cos. and used the $18.1 million net proceeds to reduce debt. Without the transaction, revolver borrowings would have been $40.7 million.

Houston Wire previously set a goal for revolver debt of $40 to $45 million excluding a divestiture.

It noted in the news release that it “achieved its revolver debt goal and believes the substantial debt reduction of $66.4 million lessens financial risk without any deterioration of its ability to provide excellent customer service.”

The company has a $6.2 million Paycheck Protection Program loan of which it expects $5.8 million will be forgiven in 2021.

Total debt at Dec. 31 was $28.8 million.

Houston Wire is a Houston-based industrial distributor of wire can cable.

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