HCI Group’s 4.75% Convertible Senior Notes Due 2042 Became Convertible on January 1, 2025
HCI Group announced that its 4.75% Convertible Senior Notes Due 2042 became convertible by all Holders starting January 1, 2025, through March 31, 2025. This conversion opportunity was triggered because HCI's share price exceeded 130% of the Conversion Price of $80.54 during the final trading days of Q4 2024.
Holders can convert their Notes into HCI common stock at a ratio of approximately 12.4166 shares per $1,000 principal amount. For conversions before March 31, 2025, HCI plans to implement Physical Settlement, delivering only common stock. The company is also considering a full redemption of the Notes on June 5, 2025, if conditions are met, which require the stock price to maintain at least 130% above the Conversion Price for 20 trading days within any 30-day trading period.
HCI Group ha annunciato che le sue Note Senior Convertibili a 4,75% con scadenza nel 2042 diventeranno convertibili per tutti i Detentori a partire dal 1 gennaio 2025 fino al 31 marzo 2025. Questa opportunità di conversione è stata attivata poiché il prezzo delle azioni di HCI ha superato il 130% del Prezzo di Conversione di 80,54 dollari durante gli ultimi giorni di contrattazione del Q4 2024.
I Detentori possono convertire le loro Note in azioni ordinarie HCI a un rapporto di circa 12,4166 azioni per ogni 1.000 dollari di importo nominale. Per le conversioni effettuate prima del 31 marzo 2025, HCI prevede di implementare la Liquidazione Fisica, consegnando solo azioni ordinarie. L'azienda sta inoltre considerando un rimborso totale delle Note il 5 giugno 2025, se verranno soddisfatte determinate condizioni, che richiedono che il prezzo delle azioni si mantenga almeno al 130% sopra il Prezzo di Conversione per 20 giorni di contrattazione all'interno di un periodo di contrattazione di 30 giorni.
HCI Group anunció que sus Notas Senior Convertibles al 4.75% con vencimiento en 2042 se volverán convertibles para todos los Titulares a partir del 1 de enero de 2025 hasta el 31 de marzo de 2025. Esta oportunidad de conversión se activó porque el precio de las acciones de HCI superó el 130% del Precio de Conversión de 80.54 dólares durante los últimos días de negociación del Q4 2024.
Los Titulares pueden convertir sus Notas en acciones ordinarias de HCI a una proporción de aproximadamente 12.4166 acciones por cada 1,000 dólares de monto principal. Para las conversiones antes del 31 de marzo de 2025, HCI planea implementar Liquidación Física, entregando solo acciones ordinarias. La compañía también está considerando un reembolso total de las Notas el 5 de junio de 2025, si se cumplen las condiciones, que requieren que el precio de la acción se mantenga al menos un 130% por encima del Precio de Conversión durante 20 días de negociación dentro de un período de negociación de 30 días.
HCI Group는 2042년 만기 4.75% 전환형 선순위 채권이 2025년 1월 1일부터 2025년 3월 31일까지 모든 보유자에 의해 전환 가능해진다고 발표했습니다. 이 전환 기회는 HCI의 주가가 2024년 4분기 마지막 거래일 동안 전환 가격인 80.54달러의 130%를 초과함에 따라 발생했습니다.
보유자는 약 12.4166주를 1,000달러의 원금에 대해 HCI의 보통주로 전환할 수 있습니다. 2025년 3월 31일 이전에 전환하는 경우, HCI는 실물 인수를 시행할 계획이며, 보통주만을 제공합니다. 또한 회사는 조건이 충족된다면 2025년 6월 5일에 채권을 전액 상환할 가능성을 고려하고 있으며, 여기에는 주가가 30일 거래 기간 내 20거래일 동안 전환 가격보다 최소 130% 이상 유지되어야 합니다.
HCI Group a annoncé que ses Obligations Senior Convertibles à 4,75% venant à échéance en 2042 deviendront convertibles pour tous les Détenteurs à partir du 1er janvier 2025 jusqu'au 31 mars 2025. Cette opportunité de conversion a été déclenchée parce que le prix de l'action d'HCI a dépassé 130% du Prix de Conversion de 80,54 dollars pendant les derniers jours de négociation du quatrième trimestre 2024.
Les Détenteurs peuvent convertir leurs Obligations en actions ordinaires HCI à un ratio d'environ 12,4166 actions pour 1 000 dollars de montant principal. Pour les conversions avant le 31 mars 2025, HCI prévoit de mettre en œuvre une Règlement Physique, n'exigeant que des actions ordinaires. La société envisage également un remboursement complet des Obligations le 5 juin 2025, si les conditions sont remplies, ce qui nécessite que le prix de l'action reste au moins 130% au-dessus du Prix de Conversion pendant 20 jours de bourse dans une période de négociation de 30 jours.
HCI Group gab bekannt, dass ihre 4,75% Wandelanleihen mit Fälligkeit 2042 für alle Inhaber vom 1. Januar 2025 bis zum 31. März 2025 wandelbar werden. Diese Wandlungsmöglichkeit wurde aktiviert, weil der Aktienkurs von HCI während der letzten Handelstage des 4. Quartals 2024 über 130% des Wandlungspreises von 80,54 Dollar gestiegen ist.
Inhaber können ihre Anleihen im Verhältnis von etwa 12,4166 Aktien pro 1.000 Dollar Nennbetrag in HCI-Stammaktien umwandeln. Für Umwandlungen vor dem 31. März 2025 plant HCI die Umsetzung von Physischer Abwicklung, bei der nur Stammaktien geliefert werden. Das Unternehmen erwägt auch eine vollständige Rückzahlung der Anleihen am 5. Juni 2025, wenn die Bedingungen erfüllt sind, die erfordern, dass der Aktienkurs mindestens 130% über dem Wandlungspreis für 20 Handelstage innerhalb eines 30-tägigen Handelszeitraums bleibt.
- Strong stock performance evidenced by share price maintaining over 130% above conversion price
- Company's ability to settle conversions with common stock indicates strong liquidity position
- Potential early redemption option shows financial flexibility
- Potential dilution of existing shareholders if significant note conversion occurs
- Increased shares outstanding could pressure stock price
Insights
TAMPA, Fla., Jan. 02, 2025 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, has announced that its
The terms of the Notes provide that the Notes will become convertible during a quarter, when the HCI closing share price for 20 trading days during the final 30 trading days of the immediately preceding quarter was greater than
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 May 23, 2022. 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 states that for all Notices of Conversion received on or before the close of business on March 31, 2025, HCI plans to select Physical Settlement and settle such conversions fully in HCI common stock, at the current conversion ratio of approximately 12.4166 shares of HCI common stock per
HCI states further it is considering a full redemption of the Notes on June 5, 2025, if the conditions for redemption are met. The Company has the right to redeem the existing
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, insurance management, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance company. TypTap’s operations are powered in large part by insurance-related information 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 Statements
This 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. There can be no assurance, for example, that changes in the company’s balance sheet and cash flow will not impact the ability or willingness of HCI Group to elect physical delivery or to redeem the Notes. 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.
Company Contact:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
wbroomall@typtap.com
Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel 949-574-3860
HCI@gatewayir.com
FAQ
What is the conversion ratio for HCI Group's 4.75% Convertible Notes due 2042?
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What settlement method will HCI use for note conversions through March 31, 2025?
