United Insurance Holdings Corp. (UPC Insurance or the Company)
(NASDAQ:UIHC), announced today that it has priced an underwritten public
offering of 4,000,000 shares of its common stock at a price to the
public of $12.50 per share for gross proceeds of $50 million. The net
proceeds from the sale of the shares, after deducting the underwriters'
discounts and other estimated offering expenses payable by the Company,
will be approximately $47 million. The Company has also granted the
underwriters a 30-day option to purchase up to an additional 600,000
shares of common stock offered in the public offering to cover
overallotments, if any.
UPC Insurance intends to use the net proceeds from this offering for
general corporate purposes, including statutory capital in support of
its growth. The offering is expected to close on March 5, 2014 subject
to customary closing conditions.
Raymond James & Associates, Inc. and Wells Fargo Securities, LLC are
serving as Joint Book-Running Managers for the offering and Sterne, Agee
& Leach, Inc. is serving as Co-Manager.
A shelf registration statement relating to the shares described above
was previously filed with, and has been declared effective by,
the Securities and Exchange Commission (SEC). A preliminary prospectus
supplement related to the offering has been filed with the SEC and is
available on the SEC's website located at http://www.sec.gov.
Copies of the preliminary prospectus supplement and the accompanying
prospectus relating to this offering may be obtained from: Raymond James
& Associates, Inc., Attention: Prospectus Department, 880 Carillon
arkway, St. Petersburg, Florida 33716, telephone: (800) 248-8863 or
Wells Fargo Securities, LLC Attention: Equity Syndicate Dept., 375 Park
Avenue, New York, New York 10152, telephone: (800) 326-5897 or email: firstname.lastname@example.org;
or Sterne, Agee & Leach, Inc., Prospectus Department, 277 Park Avenue,
24th Floor, New York, New York 10172, phone: (212) 338-4708, fax: (205)
414-6373, email: email@example.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there be any
sale of these securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state or jurisdiction.
Forward Looking Statements
Certain statements included in this press release are intended as
"forward-looking statements." These statements include statements
relating to UPC Insurance's expectations regarding the completion,
timing and size of the proposed public offering and the intended use of
proceeds. UPC Insurance cautions investors not to place undue reliance
on the forward-looking statements contained in this release. These
forward-looking statements involve certain risks and uncertainties that
could cause the results to differ materially from those expected by UPC
Insurance. There can be no assurance that UPC Insurance will be able to
complete the public offering on the anticipated terms, or at all or that
the net proceeds of the offering will be used as indicated. Completion
of the common stock offering on the terms described, and the application
of net proceeds, are subject to numerous conditions, many of which are
beyond the control of the Company, including, without limitation,
general economic conditions, market conditions, satisfaction of
customary closing conditions, and other factors, including those set
forth in the Risk Factors section of the Company's periodic reports and
other documents filed with the SEC, copies of which are available on the
SEC's website, www.sec.gov.
Any forward-looking statements made in this press release speak only as
of the date of this release and, except as required by law, UPC
Insurance undertakes no obligation to update any forward-looking
statement contained in this press release, even if UPC Insurance's
expectations or any related events, conditions or circumstances change.
About UPC Insurance
Founded in 1999, UPC Insurance is an insurance holding company that
sources, writes and services residential property and casualty insurance
policies using a network of independent agents and a group of wholly
owned insurance subsidiaries. United Property & Casualty Insurance
Company, the primary operating subsidiary of UPC Insurance, writes and
services property and casualty insurance in Florida, Massachusetts, New
Jersey, North Carolina, Rhode Island, South Carolina and Texas, and is
licensed to write in New Hampshire and Georgia. From its headquarters in
St. Petersburg, UPC Insurance's team of dedicated professionals manages
a completely integrated insurance company, including sales,
underwriting, customer service and claims.
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