Nortek plans $750K private debt offering

PROVIDENCE – Nortek Inc., a maker of residential and commercial security, ventilation, HVAC, security and home technology products under the Broan, NuTone and other brands, today announced plans to raise $750 million through a private bond offering.

The offering will consist of senior secured notes due 2013, the company said. The notes “will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent such registration or an exemption from the registration requirements,” Nortek said.

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Concurrently with that offering, the company also intends to enter into a new senior, secured revolving line of credit. Nortek then will use its new asset-based line of credit, together with the proceeds from the sale of the new senior notes, to repay all outstanding indebtedness under its existing senior secured line of credit, the company said today.

On Friday, Nortek posted a first-quarter loss of $4.1 million, compared with a year-ago profit of $9.2 million, as net sales fell 2.4 percent to $540 million. Parent company NTK Holdings Inc. – whose balance sheet includes certain senior debt and deferred compensation expenses not shared by the subsidiary – posted a loss of $14.0 million compared with the 2007 first quarter’s net earnings of $1.2 million, as interest costs edged up 1.7 percent to $43.0 million. (READ MORE)

“Nortek continues to manage its business well in this difficult housing market,” Chairman and CEO Richard L. Bready said in a statement on Friday. “However, operating results were adversely impacted as the housing market continued to weaken. Additionally, operating earnings were also impacted in the first quarter of 2008 by higher commodity and transportation costs.”

NTK Holdings Inc., a Delaware corporation with its headquarters in Providence, is the parent of Nortek Holdings Inc. and Nortek Inc. Additional information can be found at www.nortek-inc.com.