Resideo to Raise Capital With Public Offering of Common Stock

Proceeds from the sale of 17 million shares of Resideo common stock will be used to pay down debt and for funding growth investments.

AUSTIN, Texas — Resideo Technologies (NYSE: REZI) announced that it has commenced an underwritten public offering of 17 million shares of its common stock.

Resideo intends to use the net proceeds of the offering to repay borrowings under its revolving credit facility and for general corporate purposes, including funding growth investments and potential acquisitions.

Morgan Stanley and Evercore ISI are acting as lead joint book-running managers on the transaction. BofA Securities and J.P. Morgan are acting as additional bookrunners on the transaction. The underwriters will have the option to purchase up to an aggregate of 2.55 million additional shares of common stock from Resideo.

The company’s stock fell 14% to close at $16.77 after the company reported the common stock offering on Monday.

On Nov. 5, Resideo reported better-than-expected third-quarter results. ADI revenue of $790 million increased 11%, which included an approximate 2.8 percentage point benefit from acquisitions. Demand returned across the business, particularly for products serving the residential market in North America and for large project business.

Products & Solutions Q3 revenue was $572 million, up 12% compared to last year due to improved end market demand, particularly in the security and comfort markets. Products & Solutions concluded the quarter with backlog well above typical levels, reflecting continued strong demand as well as COVID-19-related impacts on the company’s manufacturing operations and supply chain.

Security Is Our Business, Too

For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.

A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!

Subscribe Today!

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Our Newsletters