<SEC-DOCUMENT>0001013594-20-000453.txt : 20200429
<SEC-HEADER>0001013594-20-000453.hdr.sgml : 20200429
<ACCEPTANCE-DATETIME>20200428210037
ACCESSION NUMBER:		0001013594-20-000453
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20200429
DATE AS OF CHANGE:		20200428
EFFECTIVENESS DATE:		20200429

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HC2 HOLDINGS, INC.
		CENTRAL INDEX KEY:			0001006837
		STANDARD INDUSTRIAL CLASSIFICATION:	FABRICATED STRUCTURAL METAL PRODUCTS [3440]
		IRS NUMBER:				541708481
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35210
		FILM NUMBER:		20826984

	BUSINESS ADDRESS:	
		STREET 1:		450 PARK AVENUE
		STREET 2:		30TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-235-2690

	MAIL ADDRESS:	
		STREET 1:		450 PARK AVENUE
		STREET 2:		30TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HC2 Holdings, Inc.
		DATE OF NAME CHANGE:	20140415

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PTGi HOLDING, INC.
		DATE OF NAME CHANGE:	20131108

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRIMUS TELECOMMUNICATIONS GROUP INC
		DATE OF NAME CHANGE:	19960814

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Percy Rockdale LLC
		CENTRAL INDEX KEY:			0001801092
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			MI
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		595 MADISON AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		646-896-4446

	MAIL ADDRESS:	
		STREET 1:		595 MADISON AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>hc2hdfan2-042820.htm
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    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;">SCHEDULE 14A</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Rule 14a-101)</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">INFORMATION REQUIRED IN PROXY STATEMENT</div>
    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;">SCHEDULE 14A INFORMATION</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">PROXY STATEMENT PURSUANT TO SECTION 14(a) OF</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">THE SECURITIES EXCHANGE ACT OF 1934</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Amendment No.&#160; )</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt; font-weight: bold;">Filed by the Registrant [&#160; ]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt; font-weight: bold;">Filed by a Party Other than the Registrant [X]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt; font-weight: bold;">Check the Appropriate Box:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Preliminary Proxy Statement</div>
    <div style="text-indent: -14.4pt; margin-left: 33.6pt; line-height: 11.4pt;">[&#160; ] Confidential, for Use of the Commission Only (as permitted by<br>
      Rule 14a-6(e)(2))</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Definitive Proxy Statement</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[X] Definitive Additional Materials</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;"><u>HC2 Holdings, Inc.</u></div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Name of registrant as specified in its charter)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">PERCY ROCKDALE LLC</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">RIO ROYAL LLC</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">MG CAPITAL MANAGEMENT LTD.</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">GEORGE BROKAW</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">KENNETH COURTIS</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">MICHAEL GORZYNSKI</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">ROBIN GREENWOOD</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">LIESL HICKEY</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;"><u>JAY NEWMAN</u></div>
    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; margin-bottom: 6pt; font-weight: bold;">&#160;(Name of person(s) filing proxy statement, if other than the registrant)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Payment of Filing Fee (Check the Appropriate Box):</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="margin-left: 12pt; line-height: 11.4pt;">[X] No fee required.</div>
    <div style="text-align: justify; margin-left: 12pt; line-height: 11.4pt;">[ &#160; ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(1) Title of each class of securities to which transaction applies:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(2) Aggregate number of securities to which transaction applies:</div>
    <div style="text-indent: -15.6pt; margin-left: 35.65pt; line-height: 11.4pt;">(3) Per unit price or other underlying value of transaction computed pursuant to<br>
      Exchange Act Rule 0-11 (set forth the amount on which the filing fee is<br>
      calculated and state how it is determined):</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(4) Proposed maximum aggregate value of transaction:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(5) Total fee paid:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; margin-left: 12pt; line-height: 11.4pt;">[&#160; ] Fee paid previously with preliminary materials:</div>
    <div style="text-indent: -14.4pt; margin-left: 26.4pt; line-height: 11.4pt;">[&#160; ] Check box if any part of the fee is offset as provided by Exchange Act<br>
      Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(1) Amount Previously Paid:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(2) Form, Schedule or Registration Statement no.:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(3) Filing Party:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(4) Date Filed:</div>
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    </div>
    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt;">MG Capital Management Ltd., together with the other participants named herein (collectively, &#8220;MG Capital&#8221;), has filed with the Securities and Exchange Commission a definitive
      consent statement and an accompanying consent card to be used to solicit votes for the election of its slate of director nominees for the Board of Directors of HC2 Holdings, Inc., a Delaware corporation (the &#8220;Issuer&#8221;).</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt; margin-bottom: 12pt;">On April 28, 2020, MG Capital and its affiliates issued the attached press release.</div>
    <div> <br>
    </div>
    <div style="line-height: 11.4pt; margin-bottom: 12pt;"><br style="line-height: 11.4pt;">
    </div>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>hc2ex991-042820.htm
<DESCRIPTION>PRESS RELEASE DATED APRIL 28, 2020
<TEXT>
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  <div style="text-align: center; line-height: 22.8pt; font-size: 18pt;">MG Capital Comments on HC2&#8217;s Desperate, Last-Minute Announcement Regarding Philip Falcone&#8217;s Excessive Compensation</div>
  <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
  </div>
  <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">&#160;Decision to Temporarily Withhold Mr. Falcone&#8217;s Bonus Validates Our Long-Standing Criticisms Over His Excessive Compensation</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">Reminds Stockholders That Mr. Falcone Has Reaped Roughly $60 Million in Compensation Over the Past 6 Years While Hundreds of Millions in Value Eroded</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">Questions Why the HC2 Board Has Not Pledged to Match Our Nominees' Commitment to Cut Director Fees by 50% and Reduce CEO Base Compensation to $1</div>
  <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;">NEW YORK&#8211;April 28, 2020&#8211;BUSINESSWIRE&#8211; MG Capital Management, Ltd. (together with Percy Rockdale LLC, the nominating stockholder, and its affiliates, &#8220;MG Capital&#8221; or &#8220;we&#8221;), a significant stockholder
    of HC2 Holdings, Inc. (NYSE: HCHC) (&#8220;HC2&#8221; or the &#8220;Company&#8221;), which collectively with the other participants in its solicitation beneficially owns more than 6% of the Company&#8217;s outstanding shares, today commented on HC2&#8217;s announcement regarding CEO
    Philip Falcone&#8217;s decision to not receive incentive compensation until the Company&#8217;s stock price reaches $7.50 per share. Additional important information is available for stockholders at <u>www.ABetterHC2.com</u>.</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;">Michael Gorzynski, MG Capital&#8217;s founder and managing partner, commented:</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;">&#8220;Mr. Falcone has reaped approximately $60 million in compensation over the past six years as he ran HC2 into the ground &#8211; and this afternoon&#8217;s desperate, last-minute ploy does not change that. If Mr.
    Falcone really cared about stockholders and wanted to align himself with them, he should have done so long before bleeding HC2 dry and pushing it to the brink of bankruptcy. Instead, he wrote another case study in recent years on how to egregiously
    mismanage a business and destroy value for anyone that entrusts him with capital.</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;">We believe it's important that Mr. Falcone return all of the compensation, restricted stock and options that he has been awarded as a result of opaque related party transactions and the inappropriate
    NAV schemes that he has cooked up with the Board. A core tenant of our plan is to recover any and all inappropriate payments made to Mr. Falcone and his allies.</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;">In contrast to the current Board, MG Capital&#8217;s nominees have committed to slashing director fees by 50% and I have committed to accepting $1 for any service as interim CEO. If Mr. Falcone and his
    fellow directors were as committed to stockholder value as they claim to be, they would have matched those pledges. And they would have also outlined a plan for delivering close to the $9 per share in value that we believe is achievable under our
    strategy.</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;">Stockholders need to recognize that Mr. Falcone and his current &#8211; and incoming &#8211; allies on the Board appear more focused on self-interests than stockholder value. MG Capital will continue to make
    that very clear as we reinforce our case for change and highlight our nominees&#8217; superior strategy. We will remain a stockholder champion at HC2.&#8221;</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: center; line-height: 11.4pt;">***</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="background-color: #FEFEFE; line-height: 14.4pt;">
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">We urge HC2 stockholders to consent to all three proposals on the&#160;<u>GREEN</u>&#160;consent card and return it in your postage-paid envelope provided. <u>The consent deadline is May
        7, 2020.</u></div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">Should you have any questions or need assistance with voting, please contact Saratoga Proxy Consulting LLC at (888) 368-0379 or (212) 257-1311 or by email at&#160;<u>info@saratogaproxy.com</u>.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt;"><font style="font-weight: bold;">PROTECT YOUR INVESTMENT.</font>&#160;<font style="font-weight: bold;"><u>SIGN</u></font><font style="font-weight: bold;">, </font><font style="font-weight: bold;"><u>DATE</u></font><font style="font-weight: bold;"> AND </font><font style="font-weight: bold;"><u>RETURN</u></font><font style="font-weight: bold;"> YOUR FILLED OUT </font><font style="font-weight: bold;"><u>GREEN</u></font><font style="font-weight: bold;"> CONSENT
        CARD TODAY.</font></div>
  </div>
  <div style="text-align: center; line-height: 11.4pt;"> <br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: center; line-height: 11.4pt;"> <br style="line-height: 11.4pt;">
  </div>
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    <div style="page-break-after:always;" id="DSPFPageBreak">
      <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
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  <div style="line-height: 13.4pt; margin-bottom: 8pt;"><br style="line-height: 13.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;"><u>FORWARD-LOOKING STATEMENTS</u></div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;">Any statements contained herein that do not describe historical facts, including future operations, are neither promises nor guarantees and may constitute &#8220;forward-looking statements&#8221; as that term is
    defined in the U.S. Private Securities Litigation Reform Act of 1995.&#160; Such forward-looking statements may include words such as &#8220;may,&#8221; &#8220;might,&#8221; &#8220;will,&#8221; &#8220;should,&#8221; &#8220;expects,&#8221; &#8220;plans,&#8221; &#8220;anticipates,&#8221; &#8220;believes,&#8221; &#8220;estimates,&#8221; &#8220;predicts,&#8221; &#8220;potential&#8221; or
    &#8220;continue,&#8221; the negative of these terms and other comparable terminology. There is no assurance or guarantee with respect to the prices at which any securities of the Issuer will trade, and such securities may not trade at prices that are stated,
    estimated or implied herein. Any such forward-looking statements contained herein are based on current assumptions, estimates and expectations, but are subject to a number of known and unknown risks and significant business, economic and competitive
    uncertainties that may cause actual results to differ materially from expectations.&#160; Numerous factors could cause actual future results to differ materially from current expectations expressed or implied by such forward-looking statements, including
    the risks and other risk factors detailed in various publicly available documents filed by the Issuer from time to time with the Securities and Exchange Commission (SEC), which are available at <u>www.sec.gov</u>, including but not limited to, such
    information appearing under the caption &#8220;Risk Factors&#8221; in Issuer&#8217;s Annual Report on Form 10-K filed with the SEC on March 16, 2020.&#160; Any forward-looking statements should be considered in light of those risk factors. MG Capital cautions readers not to
    rely on any such forward-looking statements, which speak only as of the date they are made.&#160; MG Capital disclaims any intent or obligation to publicly update or revise any such forward-looking statements to reflect any change in Issuer expectations or
    future events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results may differ from those set forth in such forward-looking statements.</div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: justify; line-height: 11.4pt;"><u>Contacts</u></div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="line-height: 11.4pt;">For Investors:<br>
    <br style="line-height: 11.4pt;">
    <br>
    Saratoga Proxy Consulting LLC<br>
    John Ferguson / Joe Mills, 212-257-1311<br>
    <u>jferguson@saratogaproxy.com</u>&#160;/<u>&#160;jmills@saratogaproxy.com</u><br>
    <br style="line-height: 11.4pt;">
    <br>
    For Media:<br>
    <br style="line-height: 11.4pt;">
    <br>
    Profile<br>
    Greg Marose / Charlotte Kiaie, 347-343-2999</div>
  <div style="line-height: 11.4pt;"><u>gmarose@profileadvisors.com</u>&#160;/&#160;<u>ckiaie@profileadvisors.com</u></div>
  <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
  </div>
  <div style="text-align: center; line-height: 11.4pt;">###</div>
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