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

Resideo Technologies, Inc. has announced the pricing of a $400 million offering of senior notes due 2034, as part of the spin-off of its ADI Global Distribution business. The notes, which bear an interest rate of 7.125% per annum, are set to close on or about June 30, 2026. This transaction is a significant step in Resideo's strategic plan to separate its businesses, allowing ADI Global Distribution to operate independently.

ADI Global Distribution Inc. is a leading specialty distributor in the low-voltage product sector, serving both commercial and residential markets. The company has established itself as a market leader in North America, particularly in the security, fire/life safety, and audio-visual product categories. With a robust portfolio of over 500,000 products from more than 1,000 suppliers, ADI's omnichannel approach ensures strong customer proximity through an extensive network of store locations. The spin-off is expected to enhance ADI's operational focus and growth potential as a standalone entity.

The proceeds from the senior notes offering will be utilized for multiple purposes, including a distribution to Resideo in connection with the spin-off and covering associated fees and expenses. Additionally, ADI has completed syndication for a $600 million senior secured term B loan facility and a $500 million senior secured revolving credit facility, which will further support its financial structure post-spin-off. The notes will initially be held in escrow until certain conditions are met, including the successful completion of the spin-off.

This transaction reflects broader trends in the market where companies are increasingly pursuing spin-offs to unlock value and streamline operations. By separating ADI Global Distribution from Resideo, both entities can focus on their core competencies and strategic priorities. The spin-off is anticipated to be completed between mid-Q3 and mid-Q4 of 2026, positioning ADI for enhanced agility and responsiveness in a competitive landscape.

Overall, the successful execution of this offering and the impending spin-off could signal a positive shift in the market dynamics for both Resideo and ADI. As companies continue to navigate complex operational environments, this transaction may serve as a case study for others looking to optimize their business structures and capitalize on growth opportunities in the low-voltage product sector.