HCI Group picks physical settlement for conversions of 3.875% notes

By Susanna Moon

Chicago, Nov. 7 – HCI Group, Inc. has elected the physical settlement method for conversions of its 3.875% convertible senior notes due March 15, 2019 that occur beginning Jan. 1, according to an 8-K filing with the Securities and Exchange Commission.

Any conversions will be settled by delivery of shares of HCI common stock.

The conversion price is about $62.

The company’s stock (NYSE: HCI) closed at $44.92 on Tuesday.

If settled in stock, the company’s book value per share is expected to increase between $5 and $6 over what it would otherwise be, according a company press release.

If the company repays the $89 million of convertible debt with cash, the company’s fully diluted earnings per share is expected to increase afterward by between $0.08 and $0.12 per quarter or $0.32 to $0.48 annually over what it otherwise would be, the release noted.

HCI Group is Tampa, Fla.-based health care IT consulting company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.