INNOVATE Corp. announced the successful closing of a series of previously announced indebtedness refinancing transactions. These transactions involved the exchange or amendment of instruments representing 81.7% of the company’s total outstanding principal debt as of June 30, 2025, significantly extending debt maturities.
Key components of the refinancing include the issuance of approximately $360.3 million aggregate principal amount of new 10.5% Senior Secured Notes due 2027, in exchange for existing notes. Additionally, $48.7 million of existing convertible notes were exchanged for $53.5 million of new 9.5% Convertible Senior Secured Notes due 2027. The liens securing the remaining existing senior secured notes were subordinated to the new notes.
Further extensions were secured for the 2020 Revolving Credit Agreement, now maturing on September 15, 2026, and the Continental General Insurance Company (CGIC) note, extended to April 30, 2027, with a 16% interest rate and a third-priority lien. The Spectrum Notes and R2 Technologies debt also saw maturity extensions to September 30, 2026, and August 1, 2026, respectively, with the R2 note's interest rate adjusted to 12% and certain fees removed. The CGIC note's aggregate outstanding principal amount is now $43.0 million after a preferred stock exchange.
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