AUSTIN, Texas, Feb. 17, 2021 /PRNewswire/ -- Resideo
Technologies, Inc. (NYSE: REZI), a leading global provider of home
comfort and security solutions, today announced that the company
has completed the refinancing of its senior secured term loan A and
term loan B with the net proceeds of a new 7-year, $950 million senior secured term loan B maturing
in 2028. The interest rate on the new term loan B is LIBOR + 225
basis points. The company also entered into a new 5-year,
$500 million revolving credit
facility. The credit facility matures in 2026 and carries an
interest rate that is initially LIBOR + 225 basis points on
borrowings but is subject to reduction based upon the company's
leverage ratio.
In connection with the refinancing, Moody's Investor Service
upgraded Resideo's corporate credit rating to "Ba3", while Standard
and Poor's affirmed the existing issuer credit rating of "BB" and
changed the credit outlook to "Stable" from "Negative".
On Feb. 16, 2021, the company
redeemed $140 million of its
outstanding senior unsecured notes. The redemption price was
106.125% of par plus accrued and unpaid interest.
"We are pleased with the strong investor interest and resulting
terms of a new term loan B and revolving credit facility,"
commented Tony Trunzo, Resideo's
Chief Financial Officer. "Through these transactions we extended
the maturities of our debt stack, lowered the annual amortization
and added additional liquidity to our balance sheet. Our credit
profile has improved as evidenced by the positive actions from the
rating agencies. With the completion of this refinancing and our
equity offering in November, we have significantly enhanced our
financial flexibility as we continue executing on our
transformation efforts and positioning Resideo for long-term
growth."
About Resideo
Resideo is a leading global manufacturer and distributor of
technology-driven products and solutions that provide comfort,
security, energy efficiency and control to customers worldwide.
Building on a 130-year heritage, Resideo has a presence in more
than 150 million homes, with 15 million systems installed in homes
each year. We continue to serve more than 110,000 professionals
through leading distributors, including our ADI Global
Distribution business, which exports to more than 100
countries from nearly 200 stocking locations around the world. For
more information about Resideo, please visit www.resideo.com.
Contacts:
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Investors:
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Media:
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Jason
Willey
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Oliver
Clark
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investorrelations@resideo.com
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oliver.clark@resideo.com
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Forward-Looking Statements
This release contains "forward-looking statements." All
statements, other than statements of fact, that address activities,
events or developments that we or our management intend, expect,
project, believe or anticipate will or may occur in the future are
forward-looking statements. Although we believe forward-looking
statements are based upon reasonable assumptions, such statements
involve known and unknown risks, uncertainties, and other factors,
which may cause the actual results or performance of the Company to
be materially different from any future results or performance
expressed or implied by such forward-looking statements. Such risks
and uncertainties include, but are not limited to, the risks
described under the headings "Risk Factors" and "Cautionary
Statement Concerning Forward-Looking Statements" in our Annual
Report on Form 10-K for the year ended December 31, 2019, our Quarterly Report on Form
10-Q for the quarter ended September 26,
2020 and other periodic filings we make from time to time
with the Securities and Exchange Commission (SEC). You are
cautioned not to place undue reliance on these forward-looking
statements. Forward-looking statements are not guarantees of future
performance, and actual results, developments and business
decisions may differ from those envisaged by our forward-looking
statements. Except as required by law, we undertake no obligation
to update such statements to reflect events or circumstances
arising after the date of this press release, and we caution
investors not to place undue reliance on any such forward-looking
statements.
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SOURCE Resideo Technologies, Inc.