HC2 Holdings Announces Upsizing and Pricing of $330 Million Senior Secured Notes Offering
January 26 2021 - 3:31PM
HC2 Holdings, Inc. (“HC2” or the “Company”) (NYSE: HCHC), a
diversified holding company, announced today the pricing of an
offering of 8.500% senior secured notes due 2026 (the “Notes”) at
an issue price of 100%. The size of the offering has been upsized
from $300 million to $330 million aggregate principal amount of the
Notes. The Notes will be senior secured obligations of the Company
and will be guaranteed by certain of the Company's domestic
subsidiaries. The offering of the Notes is expected to close on
February 1, 2021, subject to customary closing conditions. In
addition, the Company expects to close its previously announced
convertible notes exchange on the same date, subject to customary
closing conditions.
The proceeds from the issuance of the Notes are
expected to be used, together with the net cash proceeds of the
Company’s previously announced sale of its majority-owned
subsidiary Beyond6, Inc., to redeem in full HC2’s existing 11.500%
senior secured notes, repay the outstanding indebtedness under its
revolving credit agreement, pay related fees and expenses, and for
general corporate purposes.
The Notes and the New Convertible Notes have not
been and will not be registered under the Securities Act, any state
securities laws or the securities laws of any other jurisdiction,
and may not be offered or sold in the United States absent
registration or an applicable exemption from registration. The
Notes are being offered and sold only to persons reasonably
believed to be qualified institutional buyers in accordance with
Rule 144A under the Securities Act of 1933, as amended (the
“Securities Act”) and to non-U.S. persons outside the United States
in reliance on Regulation S under the Securities Act, and the New
Convertible Notes are expected to be issued in one or more private
exchange transactions pursuant to an exemption from registration
under the Securities Act.
This press release does not constitute an offer
to sell, or the solicitation of an offer to buy, any security and
shall not constitute an offer, solicitation or sale of any security
in any jurisdiction in which such offer, solicitation or sale would
be unlawful.
About HC2
HC2 (NYSE: HCHC) has a class-leading portfolio
of assets primarily in Infrastructure, Life Sciences, Spectrum and
Insurance. HC2 is headquartered in New York, New York and through
its subsidiaries employs 2,864 people.
Cautionary Statement Regarding
Forward-Looking Statements
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains, and certain oral statements made by our representatives
from time to time may contain, forward-looking statements regarding
the proposed refinancing transactions, including, among others, the
use of proceeds from the issuance of the Notes and the expected
closing date of the offering of the Notes and the convertible notes
exchange, all of which involve risks, assumptions and
uncertainties, many of which are outside of the Company's control,
and are subject to change. All forward-looking statements speak
only as of the date made, and unless legally required, HC2
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Media Contact:ReevemarkPaul Caminiti/Pam
Greene/Luc HerbowyHC2@reevemark.com(212) 433-4600
Investor Contact: FNK IRMatt Chesler,
CFAir@hc2.com(212) 235-2691
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