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.