Summary
Honeywell International Inc. (HON) filed an 8-K on October 2, 2018, to disclose important details regarding a temporary trading suspension, commonly known as a "blackout period," affecting its employee benefit plans. This blackout is directly linked to the impending spin-off of its subsidiary, Resideo Technologies, Inc. The blackout period is designed to facilitate the conversion of the Honeywell Common Stock Fund within these plans into a new fund holding Resideo stock, contingent on the successful closing of the spin-off. During this period, participants will be restricted from making certain transactions involving their Honeywell stock holdings within the plans.
Key Highlights
- 1Honeywell announced a temporary trading suspension (blackout period) for participants in its 401(k) and Puerto Rico Savings Plans, effective October 26, 2018, through November 3, 2018.
- 2The blackout is necessary to allow for the conversion of the Honeywell Common Stock Fund into a new fund holding Resideo Technologies, Inc. stock, in anticipation of the upcoming spin-off.
- 3During the blackout period, participants will be unable to conduct certain transactions with their Honeywell Common Stock Fund holdings.
- 4Honeywell's directors and executive officers will also face certain trading restrictions on Honeywell common stock acquired in connection with their service during the blackout period.
- 5The spin-off of Resideo Technologies, Inc. is expected to be completed on October 29, 2018.
- 6Shareholders of record as of October 16, 2018, will receive one share of Resideo Common Stock for every six shares of Honeywell common stock held.
Frequently Asked Questions
The trading suspension is primarily to facilitate the conversion of the Honeywell Common Stock Fund within the company's retirement plans into a new stock fund related to Resideo Technologies, Inc., in preparation for the spin-off.
The spin-off is currently expected to close on October 29, 2018. If you are a Honeywell shareholder of record on October 16, 2018, you will receive one share of Resideo Common Stock for every six shares of Honeywell common stock you hold. Cash will be provided in lieu of fractional shares.
The blackout period affects participants and beneficiaries of the Honeywell 401(k) Plan and the Honeywell Puerto Rico Savings Plan, specifically their ability to transact with the Honeywell Common Stock Fund. Additionally, Honeywell's directors and executive officers will face certain trading restrictions on Honeywell common stock acquired through their service.
The actual beginning and ending dates of the Blackout Period can be obtained without charge by contacting HR Help at 1-877-258-3699 (option 1) Monday through Friday, 8:30 a.m. to 8:30 p.m. Eastern Time, or by mail to Honeywell International Inc., c/o Corporate Employee Benefits Department, Attention: Plan Administrator, Honeywell Savings Programs, 115 Tabor Road, Morris Plains, NJ 07950, on or after October 26, 2018, and on or before two years after the end of the Blackout Period.