| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Resideo Technologies Inc. > News item |
Resideo enters five-year $500 million revolving credit facility
By Taylor Fox
New York, Feb. 17 – Resideo Technologies, Inc. entered into a new five-year $500 million revolving credit facility, according to a news release and an 8-K filing with the Securities and Exchange Commission.
Up to $75 million may be utilized under the revolver for the issuance of letters of credit for the benefit of the borrower or any of its subsidiaries.
The revolver matures in 2026 but may be extended.
Borrowings bear interest at Libor plus an applicable margin ranging from 175 basis points to 225 bps, based on the company’s consolidated total leverage ratio. The rate is initially Libor plus 225 bps.
The commitment fee ranges from 25 bps to 35 bps, depending on the leverage ratio, and is initially 35 bps.
In addition, the credit agreement contains some financial covenants requiring the maintenance of a consolidated total leverage ratio of not greater than 3.50 to 1.00, with step-downs to 3.25 to 1.00 starting in the fiscal quarter ending March 31, 2022 and 3.00 to 1.00 starting in the fiscal quarter ending Sept. 30, 2022; and a consolidated interest coverage ratio of not less than 2.75 to 1.00.
The company entered into the revolver as part of a refinancing of its debt. As previously announced, the company also completed a seven-year $950 million senior secured term loan B and redeemed $140 million of its outstanding senior unsecured notes.
No amounts were drawn under the revolver at closing, the filing noted.
JPMorgan Chase Bank, NA is the administrative agent.
Resideo is a Morris Plains, N.J.-based provider of critical comfort and security solutions primarily in residential environments.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.