Resideo looks to raise capital by offering 17M shares of its common stock

Resideo on Monday announced that it plans to offer 17 million shares of its common stock in an effort to raise additional capital.

In a statement, the maker of smart home and residential security products said the funds would be used to repay borrowings under its revolving credit facility as well as for “general corporate purposes,” including growth investments and possible acquisitions.

Morgan Stanley and Evercore ISI are acting as lead joint book-running managers on the transaction. BofA Securities and J.P. Morgan are acting as additional bookrunners on the transaction. The underwriters will have the option to purchase up to an aggregate of 2,550,000 additional shares of common stock from Resideo.

As of press time Monday, Resideo’s shares were trading at just below $17, a nearly 14% drop from their price at the opening bell.