Resideo Completes ADI Spin-Off, Repays $900M Debt, ADI Begins Trading as ADIG
REZI has more than doubled off its 52-week low of $17.459.
Summary
Resideo has completed the spin-off of ADI Global Distribution, with ADI shares beginning regular-way trading today on the NYSE under ticker ADIG. The distribution was one ADI share for every two REZI shares held as of the July 20 record date. In conjunction, Resideo repaid $900 million of its Term Loan B, with an additional $200 million expected by end of Q3, significantly deleveraging the balance sheet. The outstanding preferred stock was reduced by 150,000 shares to 350,000, with a proportional conversion price adjustment. This follows the board approval and record date set in early July, and positions Resideo as a pure-play building technologies company focused on accelerating profitable growth. The debt reduction and cleaner capital structure are material positives that should support the stock's recent strength near its 52-week high.
At the time of this announcement, REZI was trading at $36.38 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $3.8B. The 52-week trading range was $17.46 to $31.50. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: PR Newswire.