HCI Group Prices $100 Mln Convertible Senior Notes Offering

(RTTNews) - HCI Group, Inc. (HCI) Friday priced an offering of $100 million aggregate principal amount of 3.875 percent convertible senior notes due 2019 in a private placement to qualified, institutional buyers.

Initial purchasers have been granted an option to purchase up to an additional $15 million aggregate principal amount of the notes.

The notes will be paid semiannually and matures on March 15, 2019, unless converted in accordance with their terms prior to such date. The conversion rate for the notes will initially be 16.0090 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $62.47 per share.

The sale of the notes is expected to close on December 11, 2013, subject to customary closing conditions.

HCI intends to use up to $30 million of the net proceeds from the offering of the notes to repurchase shares of its common stock pursuant to a prepaid forward contract. Remaining proceeds from the offering will be used for general corporate purposes including, but not limited to, working capital.