The provider of home comfort and security solutions worldwide, Resideo Technologies, Inc. (NYSE: REZI) surged by 9.86% in extended trading, bringing the stock to $28.75. The stock remained stood firm in the regular session gaining 1.37% to close the trading at $26.17.
What caused the surge?
The company produces several products that are designed to improve comfort, energy efficiency, and control for customers around the world. Resideo, as a brand with more than 130 years of history, is now present in a total of 150 million homes, with more than 15 million systems installations every year. With over 110,000 professionals served by leading distributors, including Its ADI Global Distribution business, it continues to conduct business with the industry’s leading firms. Over 200 stocked locations spread around the globe provide ADI with distribution to more than 100 countries.
On Wednesday, William Blair analysts initiated the covering of the company’s stock assigning “Market Perform” ratings to it. There has not been any other directly linked news that could weigh on the surge but its recent developments could also gradually be driving the stock up.
The company participated in the 42nd Raymond James Conference for Institutional Investors, conducted virtually, this week.
A virtual Investor Day will also be held on March 11, 2021, at 10 a.m. Eastern Standard Time by the company. Senior members of Resideo will evaluate the company’s financial performance as well as discuss the company’s strategy. The presentations will be followed by a panel discussion.
Last month, the senior secured term loans A and B were refinanced by Resideo with the proceeds of a new commitment of $950 million through senior secured term loan B maturing in 2028. This new term loan B carries an interest rate of LIBOR + 225 basis points.
Additionally, the company expanded its financing resources by inking a new $500 million revolving credit facility for a five-year term. It matures in 2026 and has an interest rate initially set at LIBOR + 225 basis points on borrowings, but the company’s leverage ratio may cause it to be reduced.