HCI Group’s 4.25% Convertible Senior Notes Due 2037 to Become Convertible July 1, 2021
June 25 2021 - 8:00AM
HCI Group, Inc. (NYSE:HCI) has announced that its 4.25% Convertible
Senior Notes Due 2037 will become convertible by all Holders
beginning on July 1, 2021.
The terms of the Notes provide that the Notes will become
convertible during a quarter, when the share price for 20 trading
days during the final 30 trading days of the immediately preceding
quarter was greater than 130% of the Conversion Price. HCI’s common
shares traded above this mark for the 20 trading days from May 27
to June 24, 2021. As such, the Notes will become convertible
beginning July 1 through September 30,
2021. All Holders
who wish to convert their Notes into shares of HCI common stock
must provide a Notice of Conversion to HCI. The requirements for
such notice can be found in Section 13.02(b) of the Indenture by
and between HCI and the Bank of New York Mellon, attached as
Exhibit 4.1 to HCI’s Form 8-K filed with the Securities and
Exchange Commission on March 3, 2017. Upon a Holder’s election to
convert Notes, HCI will have the option to elect a Settlement
Method – Physical Settlement, Cash Settlement or Combination
Settlement. HCI has announced that for all Notices of Conversion
received on or before the close of business on July 16, 2021, HCI
plans to select Physical Settlement and settle such conversions
fully in HCI common stock, at the current conversion ratio of
approximately 16.46 shares of HCI common stock per $1,000 principal
amount of Notes.
About HCI Group, Inc.HCI Group, Inc. owns
subsidiaries engaged in diverse, yet complementary business
activities, including homeowners’ insurance, reinsurance, real
estate and information technology services. HCI’s leading insurance
operation, TypTap Insurance Company, is a rapidly growing,
technology-driven insurance company that is expanding nationwide to
provide homeowners and flood insurance. TypTap’s operations are
powered in large part by technology developed by HCI’s software
subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary,
Homeowners Choice Property & Casualty Insurance Company, Inc.,
provides homeowners’ insurance primarily in Florida. HCI’s real
estate subsidiary, Greenleaf Capital, LLC, owns and operates
multiple properties in Florida, including office buildings, retail
centers and marinas.
The company's common shares trade on the New York Stock Exchange
under the ticker symbol "HCI" and are included in the Russell 2000
and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes
financial and other information in the Investor
Information section of the company’s website. For
more information about HCI Group and its subsidiaries,
visit www.hcigroup.com.
Forward-Looking StatementsThis news release may
contain forward-looking statements made pursuant to the Private
Securities Litigation Reform Act of 1995. Words such as
"anticipate," "estimate," "expect," "intend," "plan," "confident,"
"prospects" and "project" and other similar words and expressions
are intended to signify forward-looking statements. Forward-looking
statements are not guarantees of future results and conditions but
rather are subject to various risks and uncertainties. Some of
these risks and uncertainties are identified in the company's
filings with the Securities and Exchange Commission. Should any
risks or uncertainties develop into actual events, these
developments could have material adverse effects on the company's
business, financial condition and results of operations. HCI Group,
Inc. disclaims all obligations to update any forward-looking
statements.
HCI Company Contact:Rachel Swansiger, Esq. HCI
Group, Inc.Tel (813) 405-3206rswansiger@hcigroup.com
HCI Investor Relations Contact:Matt
GloverGateway Investor RelationsTel (949)
574-3860HCI@gatewayir.com
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