Resideo talks $400 million eight-year notes to yield 6 1/8%-6 3/8%

By Paul A. Harris

Portland, Ore., Oct. 3 – Resideo Funding Inc. talked its $400 million offering of eight-year senior notes (B1/BB+) to yield 6 1/8% to 6 3/8%, according to a market source.

The deal, related to Honeywell International Inc.'s spinoff of the Honeywell Home business, was expected to price Wednesday, sources said.

However, no terms were available at press time.

Goldman Sachs & Co. is the left bookrunner. J.P. Morgan Securities LLC, Barclays and BofA Merrill Lynch are the joint bookrunners.

The notes become callable after three years at par plus 75% of the coupon.

Proceeds, along with proceeds from a concurrent term loan, will be used to repay a $1.2 billion intercompany note to Honeywell or a subsidiary of Honeywell, with any remaining proceeds to be used for general corporate purposes.

Resideo Funding is a special purpose vehicle of Resideo Technologies Inc., a Morris Plains, N.J.-based provider of critical comfort and security solutions primarily in residential environments.

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