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 4.75% Convertible Senior Notes Due 2042 became convertible by all Holders on January 1, 2025.
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 130% of the Conversion Price of $80.54. HCI’s common shares closed at more than 130% above the Conversion Price each day of the final 30 trading days of the quarter ended December 31, 2024. Accordingly, the Notes became convertible beginning January 1, 2025 and will remain convertible at least through March 31, 2025.
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 $1,000 principal amount of Notes.
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 4.75% Convertible Notes due 2042 at any time after June 5, 2025 if the last reported sale price of the common stock has been at least 130% of the Conversion Price for at least 20 trading days during any 30 consecutive trading day period.
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
