HC2 Broadcasting Completes $79 Million Financing
October 24, 2019
NEW YORK, Oct. 24, 2019 (GLOBE NEWSWIRE) -- HC2 Holdings, Inc. ("HC2" or the "Company") (NYSE: 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."
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
HC2 Holdings, Inc. is a publicly traded (NYSE:HCHC) diversified holding company, which seeks opportunities to acquire and grow businesses that can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. HC2 has a diverse array of operating subsidiaries across eight reportable segments, including Construction, Marine Services, Energy, Telecommunications, Life Sciences, Broadcasting, Insurance and Other. HC2's largest operating subsidiaries include DBM Global Inc., a family of companies providing fully integrated structural and steel construction services, and Global Marine Systems Limited, a leading provider of engineering and underwater services on submarine cables. Founded in 1994, HC2 is headquartered in New York, New York.
About HC2 Broadcasting
HC2 Broadcasting Holdings Inc. is the broadcasting subsidiary of HC2 Holdings, Inc. HC2 Broadcasting and its subsidiaries currently operate 184 operational stations, including 9 full-power stations, 52 Class A stations and 123 LPTV stations. In addition, HC2 Broadcasting and its subsidiaries have over 350 silent licenses and construction permits. The total HC2 Broadcasting footprint, excluding construction permits, covers approximately 60 percent of the U.S. population, in over 130 U.S. markets, including 9 of the top 10 markets across the United States. [All data as of 10/23/19]