Long-Term Debt

6 Months Ended

Jun. 30, 2024

Note 10 -- Long-Term Debt

The following table summarizes the Company’s long-term debt:


	June 30,			December 31,
	2024			2023
4.75% Convertible Senior Notes, due June 1, 2042	$	172,500		$	172,500
4.25% Convertible Senior Notes, due March 1, 2037 (a)		—			23,916
4.55% Promissory Note, due through August 1, 2036		4,561			4,700
5.50% Promissory Note, due through July 1, 2033		11,790			11,906
Finance lease liabilities, due through October 15, 2024		1			2
Total principal amount		188,852			213,024
Less: unamortized issuance costs		(3,940	)		(4,529	)
Total long-term debt	$	184,912		$	208,495

(a)

Notes converted or redeemed during the first quarter of 2024

The following table summarizes future maturities of long-term debt as of June 30, 2024, which takes into consideration the assumption that the 4.75% Convertible Senior Notes are repurchased at their next earliest call date:


Due in 12 months following June 30,
2024	$	530
2025		556
2026		585
2027		173,114
2028		646
Thereafter		13,421
Total	$	188,852

Information with respect to interest expense related to long-term debt is as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Interest Expense:
Contractual interest	$	2,264	$	2,367	$	4,382	$	4,864
Non-cash expense (b)		296		277		589		556
Total	$	2,560	$	2,644	$	4,971	$	5,420

(b)

Includes amortization of debt issuance costs.

4.25% Convertible Senior Notes

During the first quarter of 2024, the Company notified the holders of its outstanding 4.25% Convertible Senior Notes due 2037 that the Company had elected to redeem the remaining $23,916 principal balance of the 4.25% Convertible Senior Notes. As a result of this notice, the 4.25% Convertible Senior Notes became

immediately convertible into the Company’s common shares, with a redemption date of March 15, 2024. The conversion rate of the Company’s 4.25% Convertible Senior Notes was 16.5892 shares of common stock for each $1 in principal amount, which was the equivalent of approximately $60.25 per share. The Company converted $23,450 in aggregate principal of 4.25% Convertible Senior Notes for aggregate consideration of 389,087 shares of HCI’s common stock plus $1 cash consideration in lieu of fractional shares. The remaining 4.25% Convertible Senior Notes were redeemed for $466 on March 15, 2024.

4.75% Convertible Senior Notes

The conversion rate of the 4.75% Convertible Senior Notes is currently 12.4166 shares of common stock for each $1 in principal amount, which is the equivalent of approximately $80.54 per share.

The effective interest rate for the 4.75% Convertible Senior Notes, taking into account both cash and non-cash components, approximates 5.6%. Had a 20-year term been used for the amortization of the issuance costs of the 4.75% Convertible Senior Notes, the annual effective interest rate charged to earnings would have decreased to approximately 5.0%. As of June 30, 2024, the remaining amortization period of the debt issuance costs was expected to be 2.92 years.