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.
About HC2
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]
Cautionary Statement Regarding
Forward-Looking Statements
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains, and certain oral statements made by our representatives
from time to time may contain, forward-looking statements.
Generally, forward-looking statements include information
describing actions, events, results, strategies and expectations
and are generally identifiable by use of the words “believes,”
“expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,”
“projects,” “may,” “will,” “could,” “might,” or “continues” or
similar expressions. The forward-looking statements in this press
release include, without limitation, any statements regarding our
expectations regarding building shareholder value and future cash
flow and invested assets. Such statements are based on the
beliefs and assumptions of HC2's management and the management of
HC2's subsidiaries and portfolio companies. The Company believes
these judgments are reasonable, but you should understand that
these statements are not guarantees of performance or results, and
the Company’s actual results could differ materially from those
expressed or implied in the forward-looking statements due to a
variety of important factors, both positive and negative, that may
be revised or supplemented in subsequent statements and reports
filed with the Securities and Exchange Commission (“SEC”),
including in our reports on Forms 10-K, 10-Q, and 8-K. Such
important factors include, without limitation, issues related to
the restatement of our financial statements; the fact that we have
historically identified material weaknesses in our internal control
over financial reporting, and any inability to remediate future
material weaknesses; capital market conditions, including the
ability of HC2 and HC2's subsidiaries to raise capital; the ability
of HC2's subsidiaries and portfolio companies to generate
sufficient net income and cash flows to make upstream cash
distributions; volatility in the trading price of HC2 common stock;
the ability of HC2 and its subsidiaries and portfolio companies to
identify any suitable future acquisition or disposition
opportunities; our ability to realize efficiencies, cost savings,
income and margin improvements, growth, economies of scale and
other anticipated benefits of strategic transactions; difficulties
related to the integration of financial reporting of acquired or
target businesses; difficulties completing pending and future
acquisitions and dispositions; effects of litigation,
indemnification claims, and other contingent liabilities; changes
in regulations and tax laws; and risks that may affect the
performance of the operating subsidiaries and portfolio companies
of HC2. Although HC2 believes its expectations and
assumptions regarding its future operating performance are
reasonable, there can be no assurance that the expectations
reflected herein will be achieved. These risks and other
important factors discussed under the caption “Risk Factors” in our
most recent Annual Report on Form 10-K filed with the SEC, and our
other reports filed with the SEC could cause actual results to
differ materially from those indicated by the forward-looking
statements made in this press release.
You should not place undue reliance on
forward-looking statements. All forward-looking statements
attributable to HC2 or persons acting on its behalf are expressly
qualified in their entirety by the foregoing cautionary statements.
All such statements speak only as of the date made, and unless
legally required, HC2 undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contact:Investor Relations
Garrett Edson ir@hc2.com (212) 235-2691
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