INNOVATE Corp. 8K

INNOVATE Corp. refinanced its broadcasting subsidiary’s debt and agreed to sell a 75% controlling interest in HC2 Broadcasting Holdings Inc. to CONX CORP., supported by a CONX equity commitment and reciprocal purchase options, to improve INNOVATE’s capital structure while retaining a minority stake.

On June 1, 2026, INNOVATE Corp. announced that its broadcasting subsidiary, HC2 Broadcasting Holdings Inc., closed a $105 million refinancing with HC2 Merger Sub, LLC, a subsidiary of CONX CORP, using the proceeds to retire existing 8.50% and 11.45% notes, repurchase certain equity from noteholders, and pay transaction costs, with the new loan to be extinguished as merger consideration rather than repaid in cash. Concurrently, INNOVATE and CONX entered into a definitive merger agreement under which Merger Sub will merge into Broadcasting, resulting in CONX owning approximately 75% and INNOVATE retaining about 25% of Broadcasting through HC2 Broadcasting Holdco, LLC, subject to customary closing conditions and regulatory approvals. As part of the merger, CONX committed up to $75 million of post-closing equity financing (subject to adjustments and indemnities), INNOVATE received an 18‑month option to purchase up to an additional 15% of Broadcasting from CONX, and a CONX affiliate obtained a two‑year option to acquire up to 80.1% of Broadcasting’s fully diluted equity by first purchasing CONX’s stake and, if necessary, additional interests from INNOVATE, which may require the affiliate to buy all of INNOVATE’s remaining interest. The transaction is intended to strengthen INNOVATE’s capital structure and has been approved by the boards of both INNOVATE and CONX.

Filing Facts

CIK

1006837

Ticker

-

Form

8K

Source Type

sec

Accession

0001006837-26-000045

Alert Tier

8