NEW YORK, July 1, 2020 (GLOBE NEWSWIRE) -- HC2 Holdings, Inc. (“HC2”
or the “Company”) (NYSE: HCHC), a diversified holding company, today
provided an update on previously announced strategic initiatives to
monetize assets and further reduce debt.
After advanced discussions with a potential counterparty, HC2’s Board
of Directors, supported by its management team, has elected to let the
exclusivity period with the counterparty to purchase its 100%-owned
indirect subsidiaries Continental Insurance Group Ltd. and Continental
General Insurance Company (collectively, “Continental Insurance”)
lapse. HC2 continues to review strategic alternatives for Continental
Insurance and DBM Global Inc., which may or may not include a
potential sale, as well as other options that would be in the best
interests of HC2. Net proceeds from any potential divestiture would
be used to reduce debt at the HC2 holding company level.
“As part of the Board’s ongoing and comprehensive review of HC2 and
its subsidiaries, we determined that the best course of action for
Continental Insurance was to continue to examine additional strategic
alternatives,” said Wayne Barr, Jr., interim Chief Executive Officer
of HC2. “Our Board continues to freshly evaluate all strategic
options across our business in order to further reduce our leverage,
strengthen our capital structure and unlock additional value for our
stockholders.”
No assurances can be given that the strategic review process will
result in a transaction or other strategic change or outcome for
either Continental Insurance or DBM Global. The Company does not
intend to discuss or disclose further developments regarding the
strategic review process unless and until its Board of Directors has
approved a specific course of action or HC2 has otherwise determined
that further disclosure is appropriate or required by law.
About HC2
HC2 Holdings, Inc. is a publicly traded (NYSE:HCHC)
diversified holding company, which seeks opportunities to acquire and
grow businesses that can generate long-term sustainable free cash flow
and attractive returns in order to maximize value for all
stakeholders. HC2 has a diverse array of operating subsidiaries across
multiple reportable segments, including Construction, Energy,
Telecommunications, Life Sciences, Broadcasting, Insurance and Other.
HC2's largest operating subsidiary is DBM Global Inc., a family of
companies providing fully integrated structural and steel construction
services. Founded in 1994, HC2 is headquartered in New York, New York.
Learn more about HC2 and its portfolio companies at www.hc2.com.
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. Generally, forward-looking statements
include information describing actions, events, results, strategies
and expectations and are generally identifiable by use of the words
“believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,”
“estimates,” “projects,” “may,” “will,” “could,” “might,” or
“continues” or similar expressions. The forward-looking statements in
this press release include, without limitation, any statements
regarding HC2’s expectations regarding building shareholder value,
future cash flow, longer-term growth and invested assets, the timing
and effects of redeeming the 11.5% Notes, reducing HC2's leverage and
interest expense, the timing or prospects of any refinancing of HC2's
remaining corporate debt, and any statements regarding HC2’s
expectations regarding the strategic initiatives review process for
Continental Insurance and/or DBM Global. Such statements are based on
the beliefs and assumptions of HC2’s management and the management of
HC2’s subsidiaries and portfolio companies. The Company believes
these judgments are reasonable, but you should understand that these
statements are not guarantees of performance or results, and the
Company’s actual results could differ materially from those expressed
or implied in the forward-looking statements due to a variety of
important factors, both positive and negative, that may be revised or
supplemented in subsequent statements and reports filed with the
Securities and Exchange Commission (“SEC”), including in our reports
on Forms 10-K, 10-Q, and 8-K. Such important factors include, without
limitation, issues related to the restatement of our financial
statements; the fact that we have historically identified material
weaknesses in our internal control over financial reporting, and any
inability to remediate future material weaknesses; capital market
conditions, including the ability of HC2 and HC2’s subsidiaries to
raise capital; the ability of HC2’s subsidiaries and portfolio
companies to generate sufficient net income and cash flows to make
upstream cash distributions; volatility in the trading price of HC2
common stock; the ability of HC2 and its subsidiaries and portfolio
companies to identify any suitable future acquisition or disposition
opportunities; our ability to realize efficiencies, cost savings,
income and margin improvements, growth, economies of scale and other
anticipated benefits of strategic transactions; difficulties related
to the integration of financial reporting of acquired or target
businesses; difficulties completing pending and future acquisitions
and dispositions; effects of litigation, indemnification claims, and
other contingent liabilities; changes in regulations and tax laws; and
risks that may affect the performance of the operating subsidiaries
and portfolio companies of HC2. Although HC2 believes its
expectations and assumptions regarding its future operating
performance are reasonable, there can be no assurance that the
expectations reflected herein will be achieved. These risks and other
important factors discussed under the caption “Risk Factors” in our
most recent Annual Report on Form 10-K filed with the SEC, and our
other reports filed with the SEC could cause actual results to differ
materially from those indicated by the forward-looking statements made
in this press release.
You should not place undue reliance on forward-looking statements.
All forward-looking statements attributable to HC2 or persons acting
on its behalf are expressly qualified in their entirety by the
foregoing cautionary statements. All such 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.
Contact:
Investor Relations
Garrett Edson
ir@hc2.com
(212) 235-2691
