Headwaters Incorporated (NYSE: HW)
HW (“Headwaters”) reported that it completed the sale of its remaining eight coal cleaning facilities to Bowie Refined Coal, LLC and its affiliates (�BRC�) effective January 16, 2013.
Proceeds from the sale include approximately $3.8 million of cash paid at closing and approximately $10.0 million of additional cash to be paid by the end of calendar 2013, which includes release of bond collateral. Under terms of the sale, BRC agreed to pay Headwaters potential royalties and deferred purchase price totaling up to $43.7 million over approximately eight years, subject to BRC�s production of coal products. BRC also assumed certain plant liabilities, including lease and reclamation obligations. Payment of royalties and deferred purchase price based upon production is currently scheduled to begin in the latter part of calendar 2013.
As a part of the sale transaction, HW (“Headwaters”) committed to identifying 1 million tons of feedstock over the next 30 months for one of the facilities sold. HW (“Headwaters”) is subject to a $7 per ton liability for each ton that is not identified. HW (“Headwaters”) will work actively with BRC to secure feedstock to meet the commitment.
Headwaters Incorporated (NYSE: HW) is improving lives through innovative advancements in construction materials through application, design, and purpose. Headwaters is a diversified growth company providing products and services to the heavy construction materials and light building products industries. For more information about Headwaters Incorporated please visit www.hdwtrs.com.
In my opinion this is a stock to watch!
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