• Filing Date: 2020-03-06
  • Form Type: 10-K
  • Description: Annual report
Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

Note 28 -- Subsequent Events

On February 28, 2020, the Company entered into a loan agreement with American Equity Investment Life Insurance Company for gross proceeds of $10,000. The agreement bears interest at a fixed rate of 3.90% and is secured by the property in Melbourne, Florida and the assignment of associated lease agreements. Approximately $60 of principal and interest is payable in 143 monthly installments beginning April 1, 2020 plus a final balloon payment of $5,007 including principal and unpaid interest payable on March 1, 2032. The promissory note may be repaid in full at any time as long as the Company provides at least 60 days’ written notice and pays a prepayment premium and a processing fee. The proceeds were primarily used to repay the 3.95% Promissory Note due in February 2020.

On February 5, 2020, HCPCI entered into a policy replacement agreement with Anchor Property & Casualty Insurance Company (“Anchor”). Under the agreement, Anchor will cancel all its policies as of April 1, 2020 and HCPCI will offer short-term replacement policies to those policyholders, who are under no obligation to accept them. The replacement policies will have substantially the same terms and rates as the cancelled polices and will expire on the same dates the cancelled policies would have expired had they not been cancelled. Upon expiration of the replacement policies, HCPCI will offer renewals to those policyholders at its own rates and terms. At April 1, 2020, HCPCI expects to offer up to approximately 43,000 replacement policies, representing annualized premiums of up to $69,000. In addition, HCPCI will pay a cash bonus at the agreed rate ($50 per $1,000 of premium in force), provided that Anchor is in compliance with the covenants specified in the agreement.

On January 21, 2020, the Company’s Board of Directors declared a quarterly dividend of $0.40 per common share. The dividends are scheduled for payment on March 20, 2020 to stockholders of record on February 21, 2020.

On January 16, 2020, the Company granted 40,000 shares of restricted stock and 110,000 options to purchase the Company’s common shares at an exercise price of $48 per share to its chief executive officer, Paresh Patel. The options will expire on January 16, 2030. These share-based awards were granted pursuant to the 2012 Plan and will vest in equal annual installments over four years, so long as Mr. Patel remains employed by the Company. The grant date fair values of the restricted stock and options were $1,839 and $1,234, respectively.