Resideo Prices $400M 7.125% Notes, Secures $1.1B Credit Facilities
REZI•Resideo’s ADI Escrow Issuer LLC priced $400 million of senior notes due July 15, 2034, at 7.125% interest for its mid-Q3 to mid-Q4 2026 spin-off. The company also syndicated a $600 million term B loan and a $500 million revolving credit facility to fund spin-off distributions and fees.
1. Note Pricing Details
ADI Escrow Issuer LLC, a Resideo subsidiary, has issued $400 million aggregate principal amount of senior notes at par, bearing interest at 7.125% per annum and maturing on July 15, 2034. The offering is set to close on or about June 30, 2026, and proceeds will initially be held in escrow until spin-off conditions are met.
2. Senior Secured Credit Facilities
In conjunction with the spin-off, ADI finalized syndication of a $600 million senior secured term B loan facility and a $500 million senior secured revolving credit facility. Borrowings under these facilities are subject to customary conditions, including completion of the spin-off on or before drawdown.
3. Use of Proceeds and Escrow Conditions
A portion of the notes’ gross proceeds, alongside term loan borrowings, will fund a distribution to Resideo and cover transaction fees and expenses, with any remaining balance available for general corporate purposes. Escrow release is contingent on spin-off closing and other release conditions, with mandatory redemption at 100% of issue price plus accrued interest if conditions are unmet by December 31, 2026.
4. Spin-Off Timeline and Guarantees
The spin-off of ADI Global Distribution is expected between mid-Q3 and mid-Q4 2026. Prior to escrow release, the notes are non-guaranteed obligations secured by escrowed funds; post-release, they become senior unsecured obligations of ADI Global Distribution Funding LLC, guaranteed by ADI and its domestic subsidiaries.
