HCI Group, Inc. announced that its 4.75% Convertible Senior Notes Due 2042 became convertible by all Holders on January 1, 2025. This convertibility was triggered because HCI's closing share price exceeded 130% of the conversion price of $80.54 for 20 trading days during the final 30 trading days of the quarter ended December 31, 2024.
The Notes will remain convertible at least through March 31, 2025. For all Notices of Conversion received on or before March 31, 2025, HCI plans to select Physical Settlement, converting the notes fully into HCI common stock at a ratio of approximately 12.4166 shares per $1,000 principal amount.
HCI is also considering a full redemption of the Notes on June 5, 2025, if the specified conditions for redemption are met. This development impacts the company's debt profile and could lead to an increase in outstanding common shares.
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