Resideo Technologies wraps $950M term loan B tight of talk; terms

Investors on Feb. 8 received allocations of Resideo Technologies Inc.'s $950 million seven-year covenant-lite term loan B that priced at L+225 with a 0.5% Libor floor and an issue price of 99.75 in a J.P. Morgan-led transaction, according to sources. The loan was upsized by $150 million, and pricing was finalized tight of talk. Proceeds will be used to refinance the company's term loan A due 2023 and term loan B due 2025 (L+225, 0% floor), and to redeem $140 million of its 6.125% senior unsecured notes due 2026 at a redemption price of 106.125, leaving $260 million outstanding. As of Sept. 30, there was $324 million of the TLA outstanding and $468 million of the TLB. Additional proceeds from the upsizing will be used to reduce cash from the balance sheet that was to be used as part of the transaction. In addition to the TLB, the company is putting in place a new $500 million, five-year revolving credit facility. Resideo Technologies is a provider of residential comfort and security solutions. Terms: