INNOVATE Closes Indebtedness Refinancing Transactions
INNOVATE Corp. (NYSE: VATE) has successfully completed a comprehensive refinancing of its debt obligations, restructuring 81.7% of its total outstanding principal debt as of June 30, 2025. The transaction includes multiple components: exchange of $328.1M of existing senior secured notes for new 10.500% Senior Secured Notes due 2027, exchange of $48.7M convertible senior notes for new 9.5% Convertible Senior Secured Notes, and amendments to various credit facilities.
Key extensions include the company's revolving credit agreement to September 2026, CGIC note to April 2027, Spectrum Notes to September 2026, and R2 Technologies note to August 2026. The refinancing also involved exchanging preferred stock held by CGIC for additional note principal, resulting in a total CGIC note amount of $43.0M.
INNOVATE Corp. (NYSE: VATE) ha completato con successo un rifinanziamento completo dei suoi debiti, ristrutturando l'81,7% del totale del capitale residuo al 30 giugno 2025. L'operazione comprende diverse componenti: scambio di 328,1 milioni di dollari di obbligazioni senior garantite esistenti con nuove obbligazioni senior garantite al 10,500% con scadenza 2027, scambio di 48,7 milioni di dollari di obbligazioni senior convertibili con nuove obbligazioni senior convertibili garantite al 9,5%, e modifiche a vari finanziamenti creditizi.
Le principali proroghe includono l'accordo di credito revolving della societ脿 fino a settembre 2026, l'obbligazione CGIC fino ad aprile 2027, le obbligazioni Spectrum fino a settembre 2026, e l'obbligazione R2 Technologies fino ad agosto 2026. Il rifinanziamento ha inoltre previsto lo scambio delle azioni privilegiate detenute da CGIC con un aumento del capitale delle obbligazioni, portando l'importo totale dell'obbligazione CGIC a 43,0 milioni di dollari.
INNOVATE Corp. (NYSE: VATE) ha completado con 茅xito una refinanciaci贸n integral de sus obligaciones de deuda, reestructurando el 81,7% del total del principal pendiente al 30 de junio de 2025. La transacci贸n incluye varios componentes: intercambio de $328.1 millones en notas senior garantizadas existentes por nuevas Notas Senior Garantizadas al 10.500% con vencimiento en 2027, intercambio de $48.7 millones en notas senior convertibles por nuevas Notas Senior Convertibles Garantizadas al 9.5%, y enmiendas a diversas l铆neas de cr茅dito.
Las extensiones clave incluyen el acuerdo de cr茅dito revolvente de la empresa hasta septiembre de 2026, la nota CGIC hasta abril de 2027, las Notas Spectrum hasta septiembre de 2026, y la nota de R2 Technologies hasta agosto de 2026. La refinanciaci贸n tambi茅n implic贸 el intercambio de acciones preferentes en poder de CGIC por principal adicional de notas, resultando en un monto total de la nota CGIC de $43.0 millones.
INNOVATE Corp. (NYSE: VATE)電� 2025雲� 6鞗� 30鞚� 旮办 齑� 氙胳儊頇� 鞗愱笀鞚� 81.7%鞐� 頃措嫻頃橂姅 攵�毂勲ゼ 靹标车鞝侅溂搿� 鞛湹鞛愴晿瓿� 甑“臁办爼鞚� 鞕勲頄堨姷雼堧嫟. 鞚措矆 瓯半灅電� 鞐煬 甑劚 鞖旍唽搿� 鞚措（鞏挫牳 鞛堨姷雼堧嫟: 旮办〈 3鞏� 2,810毵� 雼煬鞚� 靹犾垳鞙� 雼措炒攵� 毂勱秾鞚� 2027雲� 毵岅赴 10.500% 靹犾垳鞙� 雼措炒攵� 毂勱秾鞙茧 甑愴櫂頃橁碃, 4,870毵� 雼煬鞚� 鞝勴櫂 靹犾垳鞙� 毂勱秾鞚� 9.5% 鞝勴櫂 靹犾垳鞙� 雼措炒攵� 毂勱秾鞙茧 甑愴櫂頃橂┌, 雼れ枒頃� 鞁犾毄 鞁滌劋鞐� 雽�頃� 靾橃爼霃� 韽暔霅╇媹雼�.
欤检殧 鞐办灔 靷暛鞙茧電� 須岇偓鞚� 須岇爠 鞁犾毄 瓿勳暯鞚� 2026雲� 9鞗旉箤歆�, CGIC 毂勱秾鞚� 2027雲� 4鞗旉箤歆�, 鞀ろ帣韸鸽熂 毂勱秾鞚� 2026雲� 9鞗旉箤歆�, R2 韰岉伂雴�搿滌 毂勱秾鞚� 2026雲� 8鞗旉箤歆� 鞐办灔霅橃棃鞀惦媹雼�. 霕愴暅 鞚措矆 鞛湹鞛愳棎電� CGIC臧� 氤挫湢頃� 鞖办劆欤茧ゼ 於旉皜 毂勱秾 鞗愱笀鞙茧 甑愴櫂頃橂姅 鞛戩梾鞚� 韽暔霅橃柎 CGIC 毂勱秾 齑濎暋鞚� 4,300毵� 雼煬鞐� 鞚措ゴ瓴� 霅橃棃鞀惦媹雼�.
INNOVATE Corp. (NYSE: VATE) a men茅 脿 bien un refinancement complet de ses obligations de dette, restructurant 81,7 % du principal total en circulation au 30 juin 2025. La transaction comprend plusieurs volets : 茅change de 328,1 millions de dollars de billets garantis senior existants contre de nouveaux billets garantis senior 脿 10,500 % arrivant 脿 茅ch茅ance en 2027, 茅change de 48,7 millions de dollars de billets convertibles senior contre de nouveaux billets convertibles senior garantis 脿 9,5 %, ainsi que des modifications 脿 diverses facilit茅s de cr茅dit.
Les principales extensions comprennent l'accord de cr茅dit renouvelable de la soci茅t茅 jusqu'en septembre 2026, la note CGIC jusqu'en avril 2027, les billets Spectrum jusqu'en septembre 2026, et la note R2 Technologies jusqu'en ao没t 2026. Le refinancement a 茅galement impliqu茅 l'茅change des actions pr茅f茅rentielles d茅tenues par CGIC contre un principal suppl茅mentaire sur les billets, portant le montant total de la note CGIC 脿 43,0 millions de dollars.
INNOVATE Corp. (NYSE: VATE) hat erfolgreich eine umfassende Refinanzierung seiner Schuldenverpflichtungen abgeschlossen und dabei 81,7 % der zum 30. Juni 2025 ausstehenden Gesamtschuld restrukturiert. Die Transaktion umfasst mehrere Komponenten: Umtausch von $328,1 Mio. bestehender besicherter Senior Notes gegen neue besicherte Senior Notes mit 10,500% Verzinsung und F盲lligkeit 2027, Umtausch von $48,7 Mio. wandelbarer Senior Notes gegen neue 9,5% wandelbare besicherte Senior Notes sowie 脛nderungen an verschiedenen Kreditfazilit盲ten.
Wesentliche Verl盲ngerungen umfassen die revolvierende Kreditvereinbarung des Unternehmens bis September 2026, die CGIC-Note bis April 2027, die Spectrum Notes bis September 2026 und die R2 Technologies Note bis August 2026. Die Refinanzierung beinhaltete au脽erdem den Umtausch von von CGIC gehaltenen Vorzugsaktien gegen zus盲tzlichen Anleihekapitalbetrag, wodurch sich der Gesamtbetrag der CGIC-Note auf $43,0 Mio. erh枚hte.
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Insights
INNOVATE's debt refinancing extends 81.7% of obligations, improving near-term liquidity but at higher interest costs.
INNOVATE Corp has successfully completed a comprehensive debt refinancing package that addresses 81.7% of its total outstanding debt. This restructuring effectively pushes out maturity dates across multiple debt instruments, giving the company critical breathing room by extending its repayment timeline.
The refinancing included six key components: (1) exchanging
This refinancing reflects a classic maturity extension strategy, but comes at the cost of higher interest rates on most instruments. The company is essentially paying a premium for time. For instance, the
The CGIC transaction is particularly notable as it includes converting preferred equity into debt, suggesting a strategic shift in capital structure priorities. The R2 Technologies note amendment stands out as the only rate reduction, dropping from
The November 2025 milestone requirement regarding Broadcasting segment strategic alternatives indicates potential asset sales may be part of the longer-term deleveraging strategy. This comprehensive refinancing buys INNOVATE time, but the higher interest burden will increase carrying costs until a more permanent solution is implemented.
INNOVATE鈥檚 Maturity Profile Has Been Successfully Extended
NEW YORK, Aug. 04, 2025 (GLOBE NEWSWIRE) -- INNOVATE Corp. (NYSE: VATE) (鈥淚NNOVATE鈥� or the 鈥淐ompany鈥�) today announced that it has closed a series of previously announced indebtedness refinancing transactions that will, among other things, exchange or amend existing instruments representing
The refinancing transactions include (i) the initial closing of an exchange offer and consent solicitation with respect to the Company鈥檚 senior secured notes, (ii) privately negotiated exchanges of certain of the Company鈥檚 convertible senior notes, (iii) amendment and extension of the Company鈥檚 2020 Revolving Credit Agreement (as defined below), (iv) amendment and extension of the Company鈥檚 Continental General Insurance Company (鈥淐GIC鈥�) note, as well as the exchange of a portion of the Company鈥檚 preferred stock held by CGIC in exchange for increasing the principal amount of that note, (v) amendment and extension of the Spectrum Notes (as defined below) and (vi) amendment and extension of the R2 Technologies Note (as defined below).
New Senior Secured Notes
On August 4, 2025 (the 鈥淐losing Date鈥�), the Company held an initial closing in respect of its previously announced exchange offer and consent solicitation (the 鈥淓xchange Offer鈥�) to eligible holders of its
The Company intends to make the interest payment that was initially due on August 1, 2025, in respect of any Existing Senior Secured Notes that remain outstanding following the final settlement of the Exchange Offer on August 29, 2025. Following the initial settlement of the Exchange Offer, approximately
The expiration deadline for the Exchange Offer is midnight (end of day), New York City time, on August 13, 2025, unless extended by the Company. The Company currently expects that the final settlement of the Exchange Offer will occur on August 15, 2025, subject to all conditions to the Exchange Offer having been satisfied or waived by the Company.
Existing Senior Secured Notes
Also on the Closing Date, the Company and U.S. Bank Trust Company, National Association, as trustee (the 鈥淓xisting Senior Secured Notes Trustee鈥�), entered into a first supplemental indenture (the 鈥淓xisting Senior Secured Notes Supplemental Indenture鈥�) to the indenture, dated as of February 1, 2021, by and among the Company, the guarantors party thereto from time to time and the Existing Senior Secured Notes Trustee, governing the Existing Senior Secured Notes (the 鈥淓xisting Senior Secured Notes Indenture鈥�). The Existing Senior Secured Notes Supplemental Indenture amended the Existing Senior Secured Notes Indenture and the Existing Senior Secured Notes to effectuate certain proposed amendments with respect to the Existing Senior Secured Notes pursuant to the previously announced solicitation of consents, which amendments included eliminating substantially all of the restrictive covenants, eliminating certain events of default, modifying covenants regarding mergers and consolidations and modifying or eliminating certain other provisions contained in the Existing Senior Secured Notes Indenture and the Existing Senior Secured Notes. In addition, the liens securing the Existing Senior Secured Notes were subordinated to the liens securing certain indebtedness, including the New Senior Secured Notes, New Convertible Notes referred to below and the 2020 Revolving Credit Agreement referred to below pursuant to the Existing Senior Secured Notes Supplemental Indenture.
New Convertible Notes
Also on the Closing Date, the Company settled the exchanges (collectively, the 鈥淐onvertible Notes Exchanges鈥�) under its previously announced privately negotiated exchange agreements (collectively, the 鈥淓xchange Agreements鈥�) with certain holders of its
The Convertible Notes Exchanges were made, and the New Convertible Notes were issued, in reliance on a private placement exemption from registration under the聽Securities Act. The New Convertible Notes and the shares of common stock issuable upon their conversion have not been and will not be registered under the聽Securities Act, and the New Convertible Notes and such shares may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the聽Securities Act.
Existing Convertible Notes
On the Closing Date, the Company and U.S. Bank Trust Company, National Association, as trustee (the 鈥淓xisting Convertible Notes Trustee鈥�) entered into a first supplemental indenture (the 鈥淓xisting Convertible Notes Supplemental Indenture鈥�) to the indenture, dated as of February 1, 2021, by and among the Company, the guarantors party thereto from time to time and the Existing Convertible Notes Trustee, governing the Existing Convertible Notes (the 鈥淓xisting Convertible Notes Indenture鈥�). The Existing Convertible Notes Supplemental Indenture amended the Existing Convertible Notes Indenture and the Existing Convertible Notes to effectuate certain proposed amendments with respect to the Existing Convertible Notes pursuant to the previously announced solicitation of consents, which amendments included eliminating substantially all of the restrictive covenants, eliminating certain events of default, modifying covenants regarding mergers and consolidations and modifying or eliminating certain other provisions, contained in the Existing Convertible Notes Indenture and the Existing Convertible Notes.
Revolving Credit Agreement
On the Closing Date, the Company and MSD PCOF Partners IX, LLC entered into an Eighth Amendment to Credit Agreement (the 鈥�2020 Revolving Credit Agreement Extension Amendment鈥�), which amends the Company鈥檚 existing credit agreement, dated as of March 13, 2020 (the 鈥�2020 Revolving Credit Agreement鈥�). The Eighth Amendment to Credit Agreement provides for, among other things, extension of the 2020 Revolving Credit Agreement鈥檚 maturity to September 15, 2026.
CGIC Debt
On the Closing Date, the Company and CGIC entered into a Subordinated Secured Promissory Note to, among other things, extend the maturity of its existing subordinated unsecured promissory note with CGIC (the 鈥淐GIC Note鈥�) to April 30, 2027, and secure the amended CGIC Note by a third priority lien on the same collateral securing the New Senior Secured Notes and the New Convertible Notes. The amended CGIC Note has an interest rate of
HC2 Broadcasting Holdings Debt
On the Closing Date, the Company and entered into a Tenth Omnibus Amendment to Secured Notes and Limited Consent to MSD Secured Note and Intercreditor Agreement with the noteholders of Spectrum鈥檚
R2 Technologies Debt
On the Closing Date, the Company and R2 Technologies, Inc. (鈥淩2 Technologies鈥�) entered into a Senior Secured Promissory Note to, among other things, extend the maturity of R2 Technologies鈥�
Important Notes
This communication is not and shall not constitute (i) an offer to buy, or a solicitation of an offer to sell, the Existing Senior Secured Notes or any other securities, (ii) the solicitation of consents from any holders of the Existing Senior Secured Notes or any other securities, or (iii) an offer to sell, or the solicitation of an offer to buy, the New Senior Secured Notes or any other securities (together, 鈥淪ecurities鈥�). There shall be no offering or sale of Securities, and no solicitation of consents from any holders of the Existing Senior Secured Notes or any other Securities, in any jurisdiction in which such offer, sale or solicitation would be unlawful. Any offer or solicitation will only be made pursuant to a separate disclosure or solicitation document and only to such persons and in such jurisdictions as permitted under applicable law. The offering of any Securities has not been, and will not be, registered under the Securities Act of 1933, as amended (the 鈥淪ecurities Act鈥�). No Securities may be offered or sold absent registration under the Securities Act or pursuant to an offer or sale under one or more exemptions from, or in a transaction not subject to, the registration requirements of the Securities Act.
The New Senior Secured Notes have been and are being offered for exchange only (i) to 鈥渜ualified institutional buyers鈥� as defined in Rule 144A under the Securities Act (鈥淨IBs鈥�), and (ii) outside the United States, to persons other than 鈥淯.S. persons鈥� as defined in Rule 902 under the Securities Act in compliance with Regulation S under the Securities Act (each, an 鈥淓ligible Holder鈥�).
Documents relating to the Exchange Offer will only be distributed to holders of the Existing Senior Secured Notes that complete and return a letter of eligibility confirming that they are Eligible Holders. Holders of the Existing Senior Secured Notes that desire a copy of the eligibility letter may contact Global Bondholder Services Corporation, the exchange agent and information agent for the Exchange Offer, by calling (855) 654-2015 (toll free) or at (212) 430-3774 (banks and brokerage firms) or visit the website for this purpose at https://gbsc-usa.com/eligibility/innovatecorp.
Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to INNOVATE in connection with the transactions described in this press release.
About INNOVATE
INNOVATE Corp. is a portfolio of best-in-class assets in three key areas of the new economy 鈥� Infrastructure, Life Sciences and Spectrum. Dedicated to stakeholder capitalism, INNOVATE employs approximately 3,100 people across its subsidiaries.
Forward-Looking Statements
Certain statements in this press release may constitute 鈥渇orward-looking statements鈥� within the meaning of the federal securities laws. Forward-looking statements generally relate to future events, such as the conduct, negotiation of definitive terms, holder participation, fulfillment or waiver of closing conditions and successful settlement of each of the refinancing transactions described in this press release. You are cautioned that such statements are not guarantees of future performance and that INNOVATE鈥檚 actual results may differ materially from those set forth in the forward-looking statements. All of these forward-looking statements are subject to risks and uncertainties that may change at any time. Factors that could cause INNOVATE鈥檚 actual expectations to differ materially from these forward-looking statements include INNOVATE鈥檚 exchanges of its debt securities and the other factors under the heading 鈥淩isk Factors鈥� set forth in INNOVATE鈥檚 Annual Report on Form 10-K, as supplemented by INNOVATE鈥檚 quarterly reports on Form 10-Q. Such filings are available on INNOVATE鈥檚 website or at www.sec.gov. You should not place undue reliance on these forward-looking statements, which are made only as of the date of this press release. INNOVATE undertakes no obligation to publicly update or revise forward-looking statements to reflect subsequent developments, events, or circumstances, except as may be required under applicable securities laws.
Investor Contact
Solebury Strategic Communications
Anthony Rozmus
[email protected]
(212) 235-2691聽
