Walter Industries provides update on financing business spinoff

By Lisa Kerner

Charlotte, N.C., March 23 - Walter Industries, Inc. common stock will be designated as "ex-dividend" by the New York Stock Exchange beginning April 1 as part of the company's spinoff of its wholly owned subsidiary, Walter Investment Management LLC (Spinco), to Walter Industries shareholders, it was announced on Monday.

As of the ex-dividend date, the right to receive the Spinco interests will no longer transfer with shares of Walter Industries common stock traded on the NYSE, according to Walter Industries.

In September, Walter Industries said it would separate its financing business from the company's core natural resources businesses.

Following the spinoff and prior to its merger with and into Hanover Capital Mortgage Holdings, Inc., a New Jersey-based real estate investment trust, Spinco intends to pay a taxable dividend of cash and additional Spinco interests to holders of Spinco interests received in the spinoff.

The combined company will operate as a publicly traded REIT under the name Walter Investment Management Corp. and will be based in Tampa, Fla.

Hanover Capital shareholders will vote on the merger with Spinco at a special meeting on April 15.

Walter Industries, based in Tampa, produces and exports metallurgical coal for the global steel industry; produces steam coal, coal bed methane gas, furnace and foundry coke and other related products; and operates a mortgage financing and affordable homebuilding business.

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