Resideo Technologies Announces Fifth Amendment to Credit Agreement

Resideo Technologies, Inc. (NYSE: REZI) recently disclosed entering into a Fifth Amendment to the Amended and Restated Credit Agreement. The agreement, dated December 16, 2024, involves Resideo Technologies, Inc., Resideo Holding Inc., Resideo Intermediate Holding Inc., Resideo Funding Inc., the lenders, issuing banks, and JPMorgan Chase Bank, N.A. This amendment updated the existing Amended and Restated Credit Agreement, initially dated February 12, 2021, and subsequently revised on various occasions.

The key modifications include the repricing of senior secured term B loans. This repricing affects the Initial Term B Tranche, with an outstanding principal amount of $517,787,216.60, and the Incremental Term B Tranche, with an outstanding principal amount of $598,500,000. Notable adjustments encompass a 25 basis point reduction in the interest rate margin for both tranches, resulting in a shift from Term SOFR plus 2.00% to Term SOFR plus 1.75%. Moreover, call protection terms were reinstated for both tranches, imposing a 1.00% prepayment premium on any prepayments made within six months of the Amendment Effective Date.

While these changes were significant, no other material alterations were introduced to the terms of the Initial Term B Tranche, the Incremental Term B Tranche, or the Existing Credit Agreement. A complete overview of the Amendment can be accessed through Exhibit 10.1 attached to the filing.

Additionally, the company confirmed in its filing that this information is integrated within Item 1.01 relating to the creating of a direct financial obligation or an obligation under an off-balance sheet arrangement. Further details and insights can be found in the financial statements and exhibits within the filing.

The market response to this amendment is yet to be observed, as investors assess the impact of these changes on Resideo Technologies, Inc.’s financial standing and future operations. The amendment signifies the company’s strategic approach to managing its financial commitments effectively and optimizing its capital structure for sustained growth.

This article provides an overview and insights into Resideo Technologies, Inc.’s recent financial development as per the 8-K SEC Filing dated December 16, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Resideo Technologies’s 8K filing here.

About Resideo Technologies

Resideo Technologies, Inc develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution.