NEW YORK, Dec. 31, 2020 (GLOBE NEWSWIRE) — HC2 Holdings, Inc. (“HC2” or “the Firm”) (NYSE: HCHC) introduced at the moment that it has agreed to promote its majority-owned clear vitality subsidiary Beyond6, Inc. (“Beyond6”) to Mercuria Investments US, Inc. (“Mercuria”) for roughly $169 million. HC2, which owns roughly 61% of Beyond6 on a totally diluted foundation, expects to obtain roughly $65 million in money, topic to customary closing changes.
“The sale of Beyond6 is one other vital step ahead for HC2 as our Board continues to actively consider companies throughout our portfolio and monetize belongings that enhance our capital construction and supply elevated flexibility, which can permit us to extra successfully allocate sources to excessive development, worth producing areas of the enterprise,” mentioned Wayne Barr, Jr., Chief Government Officer of HC2. “The online proceeds from the sale will permit HC2 to considerably cut back debt as we proceed to chart our path ahead.”
HC2 intends to make use of its portion of the online proceeds from the transaction to scale back debt. The transaction is anticipated to be accomplished within the first quarter of 2021, topic to regulatory approval and customary closing situations. The transaction was unanimously permitted by the Board of Administrators of HC2.
Added Barr, “Since HC2 acquired a majority stake in Beyond6 in 2014, the corporate has grown into one of many largest suppliers of different fuels within the U.S. With the assist of Mercuria’s sources and experience, we’re assured the enterprise will proceed to benefit from rising alternatives because the world strikes towards cleaner, safer and extra environment friendly sources of gas. We want Beyond6 and its proficient workforce continued success.”
“Mercuria is happy to proceed to execute on its company technique of elevated funding within the vitality transition to wash, renewable vitality sources,” mentioned Chief Funding Officer, Brian Falik. “We look ahead to constructing on the success of the model constructed by Andrew West and dealing with the Beyond6 workforce in creating holistic turnkey options for decarbonization within the medium- and heavy-duty automobile segments for its blue-chip company clients.”
Mercuria, one of many world’s largest built-in unbiased vitality and commodities corporations, has said 50 % of its new investments could be in renewable vitality over the subsequent 5 years.
Goldman Sachs & Co. LLC is performing as advisor to Beyond6 in reference to the transaction. Kramer Levin Naftalis & Frankel LLP is performing as authorized advisor to HC2, and Vinson & Elkins LLP is performing as authorized advisor to Mercuria.
HC2 Holdings, Inc. (NYSE: HCHC) has a class-leading portfolio of belongings primarily in Infrastructure, Life Sciences, Spectrum, Insurance coverage and Clear Vitality. HC2 is headquartered in New York, New York and thru its subsidiaries employs 2,864 folks.
About Beyond6, Inc.
At Beyond6, Inc., the long run is inside attain and we are able to carry you nearer to doing all your half for sustainability. Beyond6, Inc. is a diversified vitality options firm targeted on decarbonization. By way of our rising community of CNG stations for the transportation trade and different decarbonization providers, we’re delivering alternative to fleets throughout the nation. Our workforce of highly-trained strategists, designers and operations professionals are altering views as we transfer the choice gas trade ahead. To study extra, go to www.beyond6.com.
About Mercuria Vitality Group
Based in 2004, Mercuria is without doubt one of the largest unbiased vitality and commodity teams on the earth, bringing effectivity to the commodity worth chain with cutting-edge know-how and unmatched experience and options. Mercuria’s enterprise contains buying and selling flows, strategic belongings and structuring actions that generate greater than USD 120 billion in turnover. It operates from places of work around the globe, with a robust presence within the Americas, Asia and Europe. Data on Mercuria will be discovered on its web site at www.mercuria.com.
Cautionary Assertion Concerning Ahead-Trying Statements
Protected Harbor Assertion underneath the Non-public Securities Litigation Reform Act of 1995: This press launch accommodates, and sure oral statements made by our representatives every now and then could include, forward-looking statements concerning the proposed sale of Beyond6 to Mercuria, together with the anticipated cut-off date and the quantity and use of proceeds thereof, and our expectations concerning our ongoing analysis of our enterprise, capital construction and allocation of sources, together with, with out limitation , any statements concerning analysis of our companies, monetization of belongings, allocation of sources and debt discount, in addition to these that could be recognized by phrases equivalent to “will,” “intend,” “anticipate,” “anticipate,” “ought to,” “may” and related expressions, all of which contain dangers, assumptions and uncertainties, a lot of that are outdoors of the Firm’s management, and are topic to vary. Accordingly, no assurance will be on condition that the proposed sale of Beyond6 to Mercuria will probably be accomplished as proposed, or in any respect. All forward-looking statements communicate solely as of the date made, and except legally required, HC2 undertakes no obligation to replace or revise publicly any forward-looking statements, whether or not because of new info, future occasions or in any other case. HC2’s precise outcomes may differ materially from these expressed or implied within the forward-looking statements on account of quite a lot of essential elements, each constructive and destructive, that could be revised or supplemented in subsequent statements and experiences filed with the Securities and Change Fee (“SEC”), together with in our experiences on Kinds 10-Ok, 10-Q, and 8-Ok. These dangers and different essential elements mentioned underneath the caption “Threat Components” in our most up-to-date Annual Report on Type 10-Ok filed with the SEC, and our different experiences filed with the SEC may trigger precise outcomes to vary materially from these indicated by the forward-looking statements made on this press launch.
Paul Caminiti/Pam Greene/Luc Herbowy
Matt Chesler, CFA