INNOVATE Corp. Sells Controlling Broadcasting Interest; Credit Extended

What Happened

• INNOVATE filed an 8-K (Sept 2, 2026) reporting it completed the previously announced disposition of a controlling interest in its Broadcasting segment through the Merger of HC2 Broadcasting Holdings Inc. with CONX; the Merger closed on September 1, 2026 and HC2 was converted to HC2 Broadcasting Holdings LLC on September 2, 2026.
• Separately, INNOVATE and MSD PCOF Partners IX, LLC executed a Tenth Amendment to the MSD Credit Agreement (dated August 28, 2026) that extends the credit agreement’s maturity to December 31, 2026. The filing includes the LLC Agreement and the amendment as exhibits and attaches a press release.

Key Details

• Merger and conversion dates: Merger completed Sept 1, 2026; HC2 converted to HC2 Broadcasting Holdings LLC on Sept 2, 2026.
• LLC governance: Holdings LLC is managed by a three‑member HC2 Board—two directors appointed by CONX Broadcast Group, LLC and one director appointed by HC2 Broadcasting Holdco, LLC (the Innovate Director); CONX controls the majority of the board.
• Minority protections: The LLC Agreement grants certain minority protections to HC2 Holdco, including requiring the Innovate Director’s consent for specified fundamental actions, and contains customary capital, preemptive, and transfer provisions (tag‑along, drag‑along, rights of first offer).
• Credit amendment: Tenth Amendment dated Aug 28, 2026 extends maturity of the MSD Credit Agreement to December 31, 2026.
• Disclosure items: Press release attached as Exhibit 99.1; unaudited pro forma financial information relating to the Merger was previously filed and is incorporated by reference.

Why It Matters

• INNOVATE no longer holds a controlling interest in its Broadcasting segment, which is now majority‑controlled by CONX—this is a material change to the company’s operating assets and governance for that segment.
• The credit amendment pushes the MSD facility’s maturity to year‑end 2026; investors should review the amendment and the LLC Agreement (filed as Exhibits 10.1 and 10.2) and the company’s pro forma financials to assess impacts on liquidity, consolidation, and future reported results.