Resideo Announces Pricing of ADI's Offering of Unsecured Senior Notes in Connection with Planned Spin-Off

Resideo (NYSE: REZI) announced that ADI Escrow Issuer priced a $400 million senior notes offering due 2034, issued at par with a 7.125% coupon and expected to close around June 30, 2026.

Rhea-AI Summary

Resideo (NYSE: REZI) announced that ADI Escrow Issuer priced a $400 million senior notes offering due 2034, issued at par with a 7.125% coupon and expected to close around June 30, 2026.

In connection with the planned ADI spin-off, syndication is complete for a $600 million senior secured term B loan and a $500 million senior secured revolving credit facility. Proceeds will fund a distribution to Resideo, transaction costs, and general corporate purposes, with note proceeds held in escrow until spin-off-related conditions are met.

Positive

• Pricing of $400 million senior notes due 2034 at 7.125% coupon
• Completion of syndication for $600 million senior secured term B facility
• Establishment of $500 million senior secured revolver expected undrawn at spin-off close
• Financing package supports cash distribution from ADI to Resideo at spin-off
• Escrow structure and conditional redemption provide protection if spin-off not completed by 12/31/2026

Negative

• New $400 million notes and $600 million term loan increase ADI’s debt load
• Senior notes carry a relatively high fixed interest rate of 7.125%
• Financing and note release are contingent on successful completion of the spin-off
• If escrow conditions are not met, ADI faces timing and transaction uncertainty despite redemption feature

Argus Jun 17 session

-5.71% close to close Open Argus

Details

News Market Reaction – REZI

On Jun 17, the first trading day after this news, REZI closed 5.71% below the previous close.

Data tracked by StockTitan Argus for the Jun 17 session.

Key Figures

Senior notes size: $400 million Coupon rate: 7.125% per annum Notes maturity: July 15, 2034 +4 more

Senior notes size

$400 million

Aggregate principal amount of senior notes due 2034

Coupon rate

7.125% per annum

Interest rate on senior notes due 2034

Notes maturity

July 15, 2034

Maturity date of senior notes

Term loan facility

$600 million

Senior secured term B loan facility for ADI

Revolving facility

$500 million

Senior secured revolving credit facility for ADI

Spin-off timing window

mid-Q3'26 to mid-Q4'26

Expected completion range for ADI spin-off

Escrow deadline

December 31, 2026

Deadline before notes are redeemed if conditions not met

Historical Context

5 past events · Latest: Jun 04

5 events

1. Jun 04

   Spin-off update & guidance

   24h Move

   +3.2%

   Updated ADI spin-off progress and reaffirmed Q2 and full-year 2026 outlook.

2. May 14

   Investor conferences

   24h Move

   -5.8%

   Announced participation in multiple investor conferences with CFO fireside chats.

3. May 12

   Q1 2026 earnings

   24h Move

   -17.9%

   Reported Q1 revenue and EPS above outlook with higher Adjusted EBITDA.

4. May 11

   Form 10 spin-off filing

   24h Move

   -5.7%

   Filed Form 10 for ADI spin-off and outlined listing and timing expectations.

5. Apr 21

   Earnings date notice

   24h Move

   +1.3%

   Announced timing and webcast details for upcoming Q1 2026 results call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior notes, senior secured term B loan facility, revolving credit facility, Senior Secured Credit Facilities, +3 more

7 terms

senior notes financial

"has priced an offering of $400 million aggregate principal amount of senior notes due 2034"

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

senior secured term B loan facility financial

"a $600 million senior secured term B loan facility (the "Term Facility")"

A senior secured term B loan facility is a multi-year loan that has first claim on specific company assets and must be repaid on a fixed schedule; the “term B” portion typically refers to a tranche held by institutional lenders and often carries a higher interest rate than earlier bank tranches. Investors care because this loan changes a company’s cash obligations and default priority—like a mortgage that gets paid before other debts—affecting credit risk, available cash for operations and the company’s ability to raise more money.

revolving credit facility financial

"a $500 million senior secured revolving credit facility (the "Revolving Facility")"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

Senior Secured Credit Facilities financial

"together with the Term Facility, the "Senior Secured Credit Facilities""

Senior secured credit facilities are loans or lines of credit that a company borrows where lenders have first claim on specified assets if the company cannot pay back its debts. Think of it like a mortgage on a house: the bank holds the deed (collateral) and gets paid before other creditors, which usually makes the loan cheaper for the borrower. Investors watch these arrangements because they affect a company’s cost of borrowing, financial risk, and how available assets are prioritized if the company faces financial trouble.

Rule 144A regulatory

"qualified institutional buyers in accordance with Rule 144A under the Securities Act"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

Regulation S regulatory

"outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

qualified institutional buyers financial

"offered and sold only to persons reasonably believed to be qualified institutional buyers"

Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SCOTTSDALE, Ariz., June 16, 2026 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE: REZI) ("Resideo") today announced that, in connection with the previously announced spin-off (the "Spin-Off") of its ADI Global Distribution business, ADI Escrow Issuer LLC (the "Escrow Issuer"), a wholly-owned subsidiary of ADI Global Distribution Inc. ("ADI"), has priced an offering of $400 million aggregate principal amount of senior notes due 2034 (the "Notes"). The Notes will be issued at par, bear interest at a rate of 7.125% per annum and mature on July 15, 2034. The Notes offering is expected to close on or about June 30, 2026, subject to customary closing conditions. In connection with the consummation of the Spin-Off, the Notes will be assumed by ADI Global Distribution Funding LLC (the "Issuer"), a wholly-owned subsidiary of ADI, and guaranteed by ADI and each of ADI's subsidiaries that also guarantees the Senior Secured Credit Facilities (as defined below).

In addition, in connection with the Spin-Off, which is expected to be completed within the previously announced range of mid-Q3'26 to mid-Q4'26, syndication has been completed with respect to a $600 million senior secured term B loan facility (the "Term Facility") and a $500 million senior secured revolving credit facility (the "Revolving Facility" and, together with the Term Facility, the "Senior Secured Credit Facilities") of ADI. Borrowings under the Senior Secured Credit Facilities are expected to be subject to customary conditions and a condition that the Spin-Off has occurred prior to or will occur on the same date as such borrowing.

ADI intends to use a portion of the gross proceeds of the Notes, together with borrowings under the Term Facility, to make a distribution to Resideo in connection with the Spin-Off and to pay fees, costs and expenses in connection with the Senior Secured Credit Facilities and the Notes offering. ADI intends to use the remaining proceeds, if any, for general corporate purposes. ADI expects the Revolving Facility to be undrawn upon completion of the Spin-Off.

The proceeds from the Notes offering will be held in escrow until satisfaction of certain conditions precedent, including that the Spin-Off will occur on the same date as the release and certain other escrow release conditions. If such conditions are not met by December 31, 2026, the Notes will be redeemed at 100% of the issue price, plus accrued interest.

Prior to escrow release, the Notes will be senior obligations of the Escrow Issuer, will not be guaranteed and will be secured by the funds held in escrow. From and after the escrow release, the Notes will be senior unsecured obligations of the Issuer and guaranteed on an unsecured senior basis by ADI and each of ADI's existing and future domestic subsidiaries that guarantees the new Senior Secured Credit Facilities, subject to customary exceptions.

The Notes and related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except in transactions exempt from, or not subject to, the registration requirements of the Securities Act. Accordingly, the Notes and related guarantees are being offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offers of the Notes or related guarantees will be made only by means of a private offering memorandum.

About Resideo

Resideo is a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually.

About ADI

ADI is a global specialty distributor of professionally installed low-voltage products serving commercial and residential markets through an omnichannel go-to-market platform. Within North America, ADI is the market-leading distributor in the professionally installed security, fire/life safety and audio-visual product categories. We offer over 500,000 products from more than 1,000 suppliers across key specialty low-voltage categories with strong proximity to our customers with a large network of store locations.

Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, those regarding the anticipated separation of Resideo's Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies, the expected timing of the Notes offering and borrowing of the Senior Secured Credit Facilities and the related terms thereof and other future events or developments. Forward-looking statements are typically identified by such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," and similar expressions, although not all forward-looking statements contain these words. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Among the factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements are the possibility that the conditions to the Spin-Off may not be obtained or satisfied within the expected timeframe or at all; that the Spin-Off may not be completed on the anticipated terms or timing or may not occur at all; that the Spin-Off may not achieve the intended strategic, operational, or financial benefits for Resideo, ADI, their respective businesses, or shareholders; that Resideo or ADI may experience operational or other disruptions as a result of the separation, including those relating to information technology systems, business processes, internal controls, customer and vendor relationships, and workforce alignment. Each separated company's ability to succeed as an independent enterprise will depend on numerous factors, including the execution of their respective strategies and plans, access to capital markets, the competitive landscape, and general business and economic conditions. Other 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 Resideo's Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic reports, as well as risks described under the heading "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in the Form 10 filed by ADI Global Distribution Inc. with the SEC.

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 and uncertainties, which may cause the actual results or performance of Resideo or ADI to differ materially from such 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.

Contacts:

Investors:
Christopher T. Lee
Global Head of Strategic Finance
investorrelations@resideo.com

Media:
Garrett Terry
Corporate Communications Manager
garrett.terry@resideo.com

or

Dan Moore, Tali Epstein
Collected Strategies
Resideo-CS@collectedstrategies.com

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SOURCE Resideo Technologies, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Resideo (REZI) announce about ADI’s $400 million senior notes offering?

Resideo announced that ADI priced a $400 million senior notes offering due 2034 at 7.125% interest. According to Resideo, the notes are expected to close around June 30, 2026, with proceeds initially held in escrow pending spin-off related conditions.

What are the key terms of ADI’s senior notes due 2034 connected to Resideo (REZI)?

The ADI notes total $400 million, are issued at par, mature July 15, 2034, and pay 7.125% annually. According to Resideo, they will be senior obligations in escrow, then senior unsecured obligations guaranteed by ADI and certain subsidiaries after escrow release.

How do the new credit facilities support the ADI spin-off from Resideo (REZI)?

ADI completed syndication for a $600 million term B loan and a $500 million revolving facility. According to Resideo, borrowings under these senior secured credit facilities are conditional on the spin-off occurring and will help fund a distribution to Resideo and related transaction costs.

How will ADI use proceeds from the $400 million notes in the Resideo (REZI) spin-off?

ADI plans to use part of the note proceeds and term loan borrowings to make a distribution to Resideo. According to Resideo, remaining funds will cover fees, expenses for the financings, and potential general corporate purposes, with the revolver expected to be undrawn at completion.

What happens to ADI’s 2034 senior notes if the Resideo (REZI) spin-off is not completed?

If escrow conditions, including the spin-off occurring the same day, are not met by December 31, 2026, the notes will be redeemed. According to Resideo, redemption would occur at 100% of issue price plus accrued interest, returning funds to investors.

Who can buy ADI’s 7.125% senior notes related to Resideo (REZI) and are they registered?

The notes and guarantees are unregistered and offered only in private transactions to qualified institutional buyers and certain non-U.S. persons. According to Resideo, they are issued under Rule 144A and Regulation S and are not available in a public offering.