INNOVATE Corp. Amends Note Indentures for PIK Interest, Consent Fees
INNOVATE Corp. entered into two supplemental indentures on July 31, 2026, for its 10.500% Senior Secured Notes and 9.5% Convertible Senior Secured Notes due 2027. These amendments permit interest for the period from February 1, 2026, through July 31, 2026, to be paid in kind (PIK) by increasing the principal amount of notes for consenting holders, who also received a 1.5% consent fee in additional notes. This will reduce cash interest payments for the August 1, 2026, period from $19.9 million to $3.1 million for the senior secured notes and from $2.7 million to $0.5 million for the convertible notes. Additionally, a subsidiary, R2 Technologies, extended the maturity date of a promissory note with Lancer Capital, LLC from August 1, 2026, to December 31, 2026.
Key Highlights
- Supplemental indentures allow interest payment in kind (PIK) for consenting noteholders.
- Consenting holders received a 1.5% consent fee, paid in additional notes.
- 10.50% Senior Secured Notes principal to increase to $400.9M.
- Cash interest for 10.50% notes reduced from $19.9M to $3.1M.
- 9.5% Convertible Senior Secured Notes principal to increase to $58.9M.
- Cash interest for 9.5% convertible notes reduced from $2.7M to $0.5M.
- Lancer Capital LLC received $0.1M in additional convertible notes for PIK interest and consent fee.
- R2 Technologies extended promissory note maturity to December 31, 2026.
Price Impact
More from VATE