INNOVATE Corp. announced its intention to undertake a series of indebtedness refinancing transactions aimed at extending the maturities of its outstanding debt. This strategic initiative includes privately negotiated exchanges of convertible senior notes and an exchange offer for senior secured notes, alongside agreements in principle to extend several other debt instruments.
The company plans to exchange approximately $48.7 million of its 7.5% Convertible Senior Notes due 2026 for $51.1 million of newly issued 9.5% Convertible Senior Notes due 2027. Concurrently, an exchange offer was launched for its 8.5% Senior Secured Notes due 2026, proposing an exchange for new 10.5% Senior Secured Notes due 2027. The new senior secured notes indenture requires the company to meet certain milestones, including generating at least $150 million in net proceeds from asset sales.
Agreements in principle have also been reached to extend the maturity of the 2020 Revolving Credit Agreement to September 15, 2026, and the Continental General Insurance Company (CGIC) note to April 2027, with a 16% interest rate and a third-priority lien. Additionally, the Spectrum Notes are set for an extension to September 30, 2026, with a condition requiring strategic alternatives for the Broadcasting segment if not repaid by November 1, 2025. The R2 Technologies note is also slated for an extension to August 1, 2026, with a 12% interest rate and the removal of certain exit and default fees.
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