Headwaters Completes Sale of Coal Cleaning Facilities for $13.8 Mln; Shares Up 1% to New High


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Headwaters Inc. ( HW ) has completed the sale of its remaining eight coal cleaning facilities to Bowie Refined Coal, LLC and its affiliates effective January 16, 2013.

Proceeds from the sale include approximately $3.8 million of cash paid at closing and approximately $10 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.

HW is up 1.35% to a new 52-week high of $9.77. Shares have a 52-week low of $2.26.

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This article appears in: Investing , Commodities

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