HCI Group drops, then rallies after $150 mln convertible offering

HCI

19/05/2022 15:54

** HCI Group's  HCI.N  shares erase early losses on Thurs,
and last up 1.8% at $65.58 after P&C insurance firm raises
capital
    ** Shares dropped as much as 7.1% to $59.88 before reversing
course
    ** Co prices $150 mln 4.75% 20-yr convertible notes offering
 urn:newsml:reuters.com:*:nGNX1mqgpW
    ** Co to use ~$60 mln of net offering proceeds to repurchase
shares at price equal to stock's $64.43 closing price on Weds,
remainder for general corp purposes
    ** HCI has roughly $650 mln market cap, per Refinitiv data
    ** In Jan, co postponed IPO for its insurance tech unit
TypTap due to volatile market conditions  urn:newsml:reuters.com:*:nL4N2TS3NZ
    ** With move on Thurs, HCI off 21% YTD and down ~53% from
record peak hit in Nov

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))