Series A-2 preferreds have 7.5% cash dividend, 4% pay-in-kind dividend
By Toni Weeks
San Luis Obispo, Calif., Jan. 9 – HC2 Holdings, Inc. agreed on Jan. 5 to sell 14,000 shares of its series A-2 convertible participating preferred stock, according to an 8-K filing with the Securities and Exchange Commission.
The preferreds were sold at $1,000 each for proceeds of $14 million.
The terms include a quarterly cash dividend at an annualized rate of 7.5% and a cumulative quarterly pay-in-kind dividend at an annualized rate of 4%.
The series A-2 preferreds are convertible into the company’s common stock at an initial conversion price of $8.25 per share, which is a roughly 6% premium to the 30-day volume-weighted average price of the stock and a 0.72% discount to the closing share price of $8.31 on Jan. 2. The company may force conversion under certain circumstances.
The shares are redeemable at any time after May 29, 2017 at a redemption price of 150. They are putable on May 29, 2021.
Proceeds will be used for the continued implementation of the company’s business plan.
The diversified holding company, based in Herndon, Va., has interests in telecom, infrastructure, large-scale U.S. construction, energy and life sciences.
| Issuer: | HC2 Holdings, Inc.
|
| Issue: | Series A-2 convertible preferred stock
|
| Amount: | $14 million
|
| Dividend: | 7.5%, payable in cash, and 4%, payable in kind
|
| Shares: | 14,000
|
| Price: | $1,000
|
| Conversion price: | $8.25
|
| Warrants: | No
|
| Call option: | After May 29, 2017 at 150
|
| Put option: | On May 29, 2021
|
| Settlement date: | Jan. 5
|
| Stock symbol: | NYSE MKT: HCHC
|
| Stock price: | $8.31 at close Jan. 2
|
| Market capitalization: | $200 million
|
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