ADI Global Distribution

Post spin, ADI carries approximately 1.0 billion dollars of funded debt (600 million dollar term loan and 400 million dollar 7.125% senior notes due 2034), a 500 million dollar undrawn revolver, and 7% convertible participating preferred stock (initial conversion price 16.152 dollars).

About 900 million dollars of proceeds were distributed to Resideo at separation; ADI retained ~150 million dollars of cash.

TTM GAAP cash flow is distorted by 2025’s indemnity termination payment and H1’26 working‑capital build: 2025 CFO was negative 522 million dollars due mainly to the Honeywell agreement settlement, versus 85 million dollars in 2024 and 103 million dollars in 2023. Deleveraging is a clear priority and covenants include leverage and interest‑coverage tests.

The balance sheet is serviceable but not fortress‑like in a downturn.