HC2 launches $55 million four-year convertible notes, downsized $470 million senior notes offering

By Abigail W. Adams

Portland, Me., Nov. 12 – HC2 Holdings Inc. launched a $55 million offering of four-year convertible notes after the market close on Monday in conjunction with a downsized $470 million offering of three-year senior notes, according to a company news release.

Jefferies LLC is bookrunner for the Rule 144A and Regulation S convertible notes and senior notes offering.

No further deals on the convertible notes offering were available as of press time.

The senior notes offering was initially announced on Oct. 22 as a $535 million offering of five-year senior notes.

The deal was downsized and restructured to a $470 million offering of three-year senior notes and coupled with the $55 million convertible notes offering in response to market conditions, the company said in the press release.

The $535 million offering was shortened to a three-year maturity and talked with an 11˝% coupon at a reoffer price of 98.75 to yield 12% last Wednesday, according to a market source.

The deal was first expected to price in the Oct. 29 week but was pushed back to the Nov. 5 week and subsequently to the Nov. 12 week.

Proceeds will be used to redeem the company’s outstanding 11% senior secured notes due 2019.

HC2 is a New York-based diversified holding company with four core operating subsidiaries in the construction, marine services, natural gas distribution and telecommunications businesses.

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