Houston Wire & Cable to further cut revolver debt via asset proceeds

By Taylor Fox

New York, Jan. 13 – Houston Wire & Cable Co. plans to use the sale proceeds from its $5 million asset purchase agreement for the sale of its Southwest Wire Rope business and accounts receivable collections to further reduce revolving credit facility debt, according to a news release.

Houston Wire said it has already reduced revolver debt to $21.4 million as of Wednesday from a peak of $95.2 million in the first quarter of last year.

As previously reported, Houston Wire reduced the borrowings on its revolver to $22.6 million at the end of 2020.

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.

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

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