TAMPA, Fla., March 07, 2022 (GLOBE NEWSWIRE) -- HCI Group, Inc. (NYSE:HCI) announced today that conversions to common stock have reduced the principal balance of its outstanding 4.25% Convertible Senior Notes to approximately $24 million from $139 million a year ago. Under the note indenture, the remaining noteholders had the option to require the company to purchase their notes on March 1, 2022. That option expired on February 28 without any holders having exercised. Holders of the $24 million of notes will again have the option to require purchase of their notes on March 1, 2027 and March 1, 2032.
“Over the last year, we strengthened our balance sheet through a series of debt conversions and exchanges, reducing our debt-to-capital to 16% at year end,” said Paresh Patel, HCI Chairman and Chief Executive Officer. “With over $100 million in liquidity and an unleveraged balance sheet, we are prepared to fund our growth in 2022 without the need for external capital.”
About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, real estate, and reinsurance. 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 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 the company will have sufficient funds to fully fund it business plans or that will not seek additional financing should financing become available at terms to the company. 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.
