Long-Term Debt |
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| Long-Term Debt | Long-Term Debt Long-term debt is comprised of the following:
(1) Proceeds are included in Restricted cash as recorded on the Unaudited Condensed Consolidated Balance Sheets. (2) Included within Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets. A&R Credit Agreement In 2021, we entered into a credit agreement with JPMorgan Chase Bank N.A. as administrative agent (the “A&R Credit Agreement”), which was most recently amended on June 4, 2026 (as amended, the “Second A&R Credit Agreement”). We entered into the Second A&R Credit Agreement in order to facilitate the ADI Spin-Off as well as extend the revolver maturity to 2031. We evaluated the amendment under Accounting Standards Codification 470-50, Debt Modifications and Extinguishments, and determined that the amendment should be accounted for as a debt modification. The remaining principal on the Second A&R Credit Agreement includes $518 million of senior secured term loans maturing in February 2028, $588 million of senior secured term loans maturing in June 2031, and $1,216 million of senior secured term loans maturing in August 2032 (together, the “A&R Term B Facility”). Voluntary prepayment may be made at any time without premium or penalty, subject to customary breakage costs for certain borrowings indexed to the Secured Overnight Financing Rate (“SOFR”). The Second A&R Credit Agreement also contains customary mandatory prepayment provisions upon the occurrence of specified events. Borrowings under the Second A&R Credit Agreement are subject to an interest rate, at the Company’s option, of either (a) a base rate equal to the highest of the Prime Rate, the Federal Funds Effective Rate (or the Overnight Bank Funding Rate), plus 0.5%, and the one month SOFR rate, plus 1%, or (b) the SOFR rate plus the applicable margin, which shall not be less than zero. As of July 4, 2026 and December 31, 2025, the weighted average interest rate on the A&R Term B Facility, excluding the impact of the interest rate swaps, was 5.74% and 5.76%, respectively. Under the Second A&R Credit Agreement, we entered into a new senior secured revolving credit facility, which refinanced in full the existing senior secured revolving credit facility and provides for commitments in an aggregate principal amount of $500 million and a five-year term ending in June 2031 (the “A&R Revolving Credit Facility”). There were no outstanding borrowings and no letters of credit issued under the A&R Revolving Credit Facility as of July 4, 2026. In addition to paying interest on outstanding borrowings under the Second A&R Credit Agreement, the Company is subject to a quarterly commitment fee based on the unused portion of the A&R Revolving Credit Facility, ranging from 0.25% to 0.35% per annum based on the leverage ratio under the Second A&R Credit Agreement. The Second A&R Credit Agreement includes customary affirmative and negative covenants and reporting requirements, including limitations on indebtedness, liens, investments, and other restricted transactions. As of July 4, 2026, we are in compliance with all covenants. We have entered into certain interest rate swaps based on the Term Secured Overnight Financing Rate (“Term SOFR”) which effectively converts a portion of our variable-rate debt to fixed-rate debt. Refer to Note 12. Fair Value of the Notes to the Unaudited Condensed Consolidated Financial Statements for further discussion. Senior Unsecured Notes In August 2021, we issued $300 million in principal amount of 4.000% Senior Notes due 2029 (“Senior Notes due 2029”). In July 2024, we issued $600 million in aggregate principal of 6.500% Senior Notes due 2032 (“Senior Notes due 2032”). The Senior Notes due 2029 and Senior Notes due 2032 are senior unsecured obligations of Resideo guaranteed by Resideo’s existing and future domestic subsidiaries. Senior Unsecured Notes of ADIG On June 30, 2026, ADI Escrow Issuer LLC (the “Escrow Issuer”), a direct, wholly-owned subsidiary of ADIG and an indirect, wholly-owned subsidiary of the Company, completed an offering of $400 million aggregate principal of the Escrow Issuer’s 7.125% Senior Notes due 2034 (“Senior Notes due 2034”). Senior Notes due 2034 are unsecured and were issued pursuant to an Indenture, dated June 30, 2026 (the “Indenture”), between the Escrow Issuer and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The net proceeds from the sale of the Senior Notes due 2034 were used as part of the financing for the ADI Spin-Off. Pending the consummation of the ADI Spin-Off, the proceeds from the offering were deposited into a segregated escrow account until satisfaction of the conditions precedent to the ADI Spin-Off. The proceeds are included in Restricted cash as recorded on the Unaudited Condensed Consolidated Balance Sheets. As of July 4, 2026, we are in compliance with all covenants. Upon consummation of the ADI Spin-Off and satisfaction of the escrow release conditions on August 3, 2026, the Senior Notes due 2034 became obligations of ADIG and were no longer obligations of the Company. Credit Agreement of ADIG On July 1, 2026, ADIG entered into a senior secured Credit Agreement (the “Credit Agreement”) with the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement became effective on the ADI Spin-Off date. The Credit Agreement provides for (i) term loans in an aggregate principal amount of $600 million (the “Term Facility”) and (ii) revolving credit commitments in an aggregate principal amount of $500 million (the “Revolving Facility” and, together with the Term Facility, the “Credit Facilities”). Borrowings are permitted under the Credit Facilities upon completion of the ADI Spin-Off, subject to certain other conditions customary for secured facilities of this type. The Term Facility will mature, and the term loans thereunder will be required to be repaid, seven years after the ADI Spin-Off, subject to certain extension rights in the discretion of each lender. The Revolving Facility will mature, and all borrowings thereunder will be required to be repaid, five years after the ADI Spin-Off, with certain extension rights in the discretion of each lender. Borrowings under the Term Facility may not be re-borrowed once repaid. As of July 4, 2026, no amounts were drawn under the Credit Agreement. Upon consummation of the ADI Spin-Off on August 3, 2026, the Credit Facilities became obligations of ADIG and were no longer obligations of the Company. Interest Paid For the six months ended July 4, 2026 and June 28, 2025, cash paid for interest, net of interest rate derivative receipts was $92 million and $53 million, respectively.
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