INNOVATE Announces Early Results of Exchange Offer of Senior Secured Notes and Solicitation of Consents and Extends Availability of Total Early Exchange Consideration

Core Viewpoint - INNOVATE Corp. has announced early participation results for its exchange offer of 8.5% Senior Secured Notes due 2026, allowing eligible holders to exchange for newly issued 10.5% Senior Secured Notes due 2027, with a significant participation rate of 99.41% [1][3]. Group 1: Exchange Offer Details - The exchange offer allows holders of the existing 8.5% Senior Secured Notes to exchange them for new 10.5% Senior Secured Notes, with the early participation deadline set for July 30, 2025 [1]. - A total of US$328,067,000 of the existing notes were tendered, representing 99.41% of the outstanding amount, meeting the minimum exchange condition of 98% [2][3]. - The early settlement of the exchange offer is expected to occur on August 4, 2025, pending satisfaction of all conditions [5]. Group 2: Terms of New Senior Secured Notes - The new notes will have a maturity date of February 1, 2027, and an interest rate of 10.5%, with the first payment delivered as additional exchange consideration [6]. - Holders of the existing notes will receive a total of US$1,072.50 in principal amount of new notes per US$1,000 of existing notes accepted for exchange, which includes an early exchange premium [9][10]. Group 3: Proposed Amendments and Conditions - Holders of the existing notes that participated in the exchange consented to amendments that eliminate most restrictive covenants and subordinate liens on collateral [7]. - The consummation of the exchange offer is conditioned on several concurrent transactions, which may be waived by the company with certain noteholder consent [11]. Group 4: Important Dates - The expiration deadline for the exchange offer is set for midnight on August 13, 2025, with final settlement expected on August 15, 2025 [8].