Nortek, Inc. Successfully Completes Private Placement of Senior Secured Notes

PROVIDENCE, R.I., May 20 /PRNewswire-FirstCall/ -- Nortek, Inc.
("Nortek"), a leading diversified global manufacturer of innovative, branded
residential and commercial ventilation, HVAC and home technology convenience
and security products, today announced it has successfully completed the
private placement of $750 million ($742.2 million gross proceeds) 10% Senior
Secured Notes due 2013 (the "Notes"). The Notes were issued and sold in a
private Rule 144A offering to institutional investors.
The Company has also entered into a new senior secured asset-based
revolving credit facility ("ABL Facility") which provides for revolving credit
financing of up to $350 million, subject to borrowing base availability, with
a maturity of five years, including both a letter of credit and swingline loan
sub-facility. In addition, until the ABL Facility collateral agent has
completed a collateral audit, availability under the ABL Facility will
initially be limited to $175.0 million.
Nortek intends to use the net proceeds from the Notes offering, together
with proceeds of borrowings under the ABL Facility, to repay all of the
outstanding indebtedness and accrued interest under its existing senior
secured credit facility.
"We are pleased with the positive response to the Notes offering by
investors and the ABL Facility," said Nortek's Chairman and Chief Executive
Officer, Richard L. Bready.
Nortek* (a wholly owned subsidiary of Nortek Holdings, Inc., which is a
wholly owned subsidiary of NTK Holdings, Inc.) is a leading diversified global
manufacturer of innovative, branded residential and commercial ventilation,
HVAC and home technology convenience and security products. Nortek offers a
broad array of products including: range hoods, bath fans, indoor air quality
systems, medicine cabinets and central vacuums, heating and air conditioning
systems, and home technology offerings, including audio, video, access
control, security and other products.
*As used herein, the term "Nortek" refers to Nortek, Inc., together with
its subsidiaries, unless the context indicates otherwise. This term is used
for convenience only and is not intended as a precise description of any of
the separate corporations, each of which manages its own affairs.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on Nortek's current plans and expectations and involve risks and
uncertainties that could cause actual future activities and results of
operations to be materially different from those set forth in the forward-
looking statements. Important factors impacting such forward-looking
statements include the availability and cost of raw materials and purchased
components, the level of construction and remodeling activity, changes in
general economic conditions, the rate of sales growth and product liability
claims. Nortek undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise. For further information, please refer to the reports and filings of
Nortek with the Securities and Exchange Commission.
Richard L. Bready, Chairman and CEO
Edward J. Cooney, Vice President and Treasurer
(401) 751-1600
SOURCE Nortek, Inc.

Richard L. Bready, Chairman and CEO, or Edward J. Cooney, Vice President and
Treasurer, both of Nortek, Inc., +1-401-751-1600