INNOVATE Corp. announces $330 mln senior secured notes exchange offer, debt refinancing.

INNOVATE Corp. plans to extend its debt maturities through a series of refinancing transactions. The transactions include privately negotiated convertible note exchanges, a $330 million exchange offer and consent solicitation for senior secured notes, and agreements in principle to extend revolving credit and other notes. The refinancing aims to extend the company's debt maturities.

INNOVATE Corp. (NYSE: VATE), a technology-focused company, has announced a series of debt refinancing transactions aimed at extending its debt maturities. The company plans to exchange certain convertible senior notes, offer an exchange for senior secured notes, and extend various debt agreements, including a 2020 revolving credit agreement, CGIC note, Spectrum notes, and R2 Technologies note.

The first component of the refinancing strategy involves privately negotiated exchanges of convertible senior notes. INNOVATE plans to exchange approximately $48.7 million of its 7.5% Convertible Senior Notes due 2026 for newly issued 9.5% Convertible Senior Notes due 2027. This exchange will be secured by a second-priority lien on existing collateral and other collateral not previously pledged. The new notes will feature updated covenants and a higher interest rate of 9.5%, with the first payment delivered in the form of additional exchange consideration and the second payment being made in kind [1].

Additionally, INNOVATE has launched an exchange offer and consent solicitation for its 8.5% Senior Secured Notes due 2026. The company is offering to exchange these notes for newly issued 10.5% Senior Secured Notes due 2027. This exchange offer includes updated covenants and requires the company to meet certain milestones with respect to strategic alternatives for its operating subsidiaries, including asset sales generating at least $150 million in net proceeds [1].

INNOVATE has also agreed in principle to extend its 2020 revolving credit agreement, amend and extend the CGIC note, extend the Spectrum notes, and amend and extend the R2 Technologies note. These agreements aim to provide the company with more flexible financing options and longer-term debt maturities.

The refinancing transactions are expected to close concurrently, with the early settlement of the exchange offer anticipated on August 4, 2025, and the final settlement on August 15, 2025, subject to all conditions being satisfied or waived by the company [1].

References:
[1] https://www.globenewswire.com/news-release/2025/07/17/3117223/0/en/INNOVATE-Launches-Indebtedness-Refinancing-Transactions.html