Resideo Prices $400 Million in Notes for ADI Spin-Off

The notes are being issued by ADI Escrow Issuer LLC and are slated to mature on July 15, 2034. Proceeds from the offering, along with a $600 million senior secured term loan and a $500 million revolving credit facility, will be used to fund a distribution to Resideo and cover transaction-related expenses. The company expects the spin-off to be completed between mid-Q3 and mid-Q4 of 2026.

Under the terms of the offering, the funds will remain in escrow until the spin-off conditions are satisfied. If the separation does not occur by December 31, 2026, the notes will be subject to redemption at their full issue price plus accrued interest. Once the spin-off is finalized, the debt obligations will be assumed by ADI Global Distribution Funding LLC and guaranteed by ADI and its subsidiaries, shifting the company toward its goal of operating as an independent, publicly traded enterprise.