S&P revises Resideo view to stable

S&P said it revised Resideo Technologies Inc.’s outlook to stable from negative.

“The stable outlook reflects our view that Resideo’s progress in improving its profitability and deleveraging will prove lasting, supported by a macroeconomic recovery and continued solid operational performance. After having reduced operational costs, Resideo is now likely to focus on new product introductions – which require growth capital outlays – as well as on price optimization, sales strategy, and innovation,” S&P said in a press release.

Resideo plans to secure an $800 million term loan B and a $500 million revolving credit facility, which would represent a $150 million increase from its current revolver.

S&P said it expects the company to use the proceeds to refinance its term loan A and term loan B and use cash on hand to partially call $140 million of its $400 million senior unsecured notes due 2026.

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