HCI elects to redeem remaining $24 million 4.25% convertibles

By Wendy Van Sickle

Columbus, Ohio, Jan. 10 – HCI Group Inc. has elected to redeem the remaining $24 million principal amount of its 4.25% convertible senior notes on March 15, according to a news release.

As a result, the notes became immediately convertible into HCI common shares at a current conversion rate of 16.5893 common shares per $1,000 principal amount of the notes. The company expects all holders will elect to convert their notes.

“HCI has taken several steps over the past few years to strengthen its balance sheet. This latest conversion helps simplify our balance sheet and reduce our debt-to-capital ratio,” said Paresh Patel, HCI’s chairman and chief executive officer, in the release. “The company continues to have significant liquidity at the holding company to execute on our future business initiatives.”

HCI is a Tampa, Fla.-based holding company focused on insurance, real estate and information technology.

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