DivestmentJun 1, 2026, 08:31 AM
INNOVATE to sell 75% stake in Broadcasting to CONX; Refinances Debt
AI Summary
INNOVATE Corp. announced the sale of a controlling interest in its subsidiary, HC2 Broadcasting Holdings Inc. (Broadcasting), to CONX CORP. Following the transaction, CONX is expected to own approximately 75% of Broadcasting, with INNOVATE retaining about 25%. Concurrently, Broadcasting completed a $105 million refinancing transaction, using the proceeds to satisfy existing notes. CONX will also provide an equity commitment of up to $75 million to Broadcasting post-merger, and INNOVATE has an option to repurchase up to 15% of Broadcasting within 18 months.
Key Highlights
- INNOVATE to sell a controlling 75% interest in Broadcasting to CONX CORP.
- Post-closing, CONX will own approximately 75% of Broadcasting, and INNOVATE will own approximately 25%.
- Broadcasting closed a $105 million New Loan with HC2 Merger Sub, LLC, a CONX subsidiary.
- Proceeds from the New Loan were used to fully satisfy Broadcasting's existing 8.50% and 11.45% notes.
- CONX has agreed to provide Broadcasting with an equity commitment of up to $75 million after closing.
- INNOVATE has an 18-month option to purchase up to 15% of Broadcasting from CONX.
- A CONX affiliate has a two-year option to acquire up to 80.1% of Broadcasting's equity interests.
Price Impact
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