Honeywell agrees to pay $1.325B lump sum to eliminate asbestos funding obligations

HONEYWELL INTERNATIONAL INC

One-time $1.325B payment to NARCO Asbestos Trust to terminate all future funding obligations.
Removes current NARCO reserve of $695M from balance sheet upon closing; charge to be recognized.
Trust retains HWI equity interest; economic rights inure to Honeywell.
Closing subject to bankruptcy court approval and TAC/FCR joining agreement; termination date March 31, 2023.
Reaffirms full-year 2022 and Q4 2022 guidance, assuming no accounting impact in 2022.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

HONEYWELL INTERNATIONAL INC entered into Buyout Agreement with North American Refractories Asbestos Personal Injury Settlement Trust valued at $1.325 billion (effective 2022-11-18).

Action: entry
Agreement: settlement
Counterparty: North American Refractories Asbestos Personal Injury Settlement Trust
Value: $1.325 billion
Effective: 2022-11-18

Exact text from the filing

On November 18, 2022, Honeywell entered into a definitive agreement (the “Buyout Agreement”) with the North American Refractories Asbestos Personal Injury Settlement Trust (the “Trust”), providing for the elimination of Honeywell’s funding obligations to the Trust. Subject to the terms of the Buyout Agreement (including the satisfaction of the conditions noted below), Honeywell will make a one-time, lump sum payment in the amount of $1.325 billion (subject to adjustment as described in the Buyout Agreement) (the “Buyout Amount”) to the Trust in exchange for the release by the Trust of Honeywell from all further and future obligations of any kind related to the Trust

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Source: SEC EDGAR

accession 0001193125-22-288789

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