NEW YORK, Oct. 24, 2019 (GLOBE NEWSWIRE) — HC2 Holdings, Inc. (“HC2” or the “Company”) (HCHC), a diversified holding company, announced today that its Broadcasting segment has completed the issuance of $78.7 million of new notes (the “Notes”) by HC2 Broadcasting Holdings Inc. and certain of its operating subsidiaries (together, “HC2 Broadcasting”).
Net proceeds from the financing will be used to retire HC2 Broadcasting’s existing notes due 2019, as well as fund pending acquisitions, working capital and general corporate purposes.
The privately placed notes are comprised of a $36.2 million Tranche A piece funded by an affiliate of MSD Partners, L.P., along with a $42.5 million Tranche B piece funded by an institutional lender. The Notes, which have a blended PIK coupon rate of 9.6%, mature in October 2020.
“We are pleased to have completed the financing at HC2 Broadcasting,” said Philip Falcone, Chairman, President and Chief Executive Officer of HC2. “With the completion of this financing package, we can focus our efforts on completing our technology and infrastructure upgrades, as well as the station buildout for our Broadcasting distribution platform. It’s very exciting to see everything coming together as planned. We now have 184 operating stations and host over 70 different networks, including our own Azteca America Network, on these stations. With our planned acquisitions and station builds adding to our already expansive geographic coverage, we expect that we will continue to attract and host quality networks that wish to capitalize on the increase in cord cutting in the Cable & Television marketplace.”
