SOURCE: Nortek, Inc.

Nortek, Inc.

May 10, 2016 09:00 ET

Nortek Amends and Extends Asset-Based Credit Facility to Increase Borrowing Capacity and Improve Financial and Operational Flexibility

PROVIDENCE, RI--(Marketwired - May 10, 2016) - Nortek, Inc. (NASDAQ: NTK), a global diversified industrial company with leading brands and innovative air management and technology-driven solutions for residential and commercial applications, today announced it has successfully completed amendments to its asset-based revolving credit agreement (the "ABL Facility") that will improve Nortek's financial and operational flexibility.

Under the amended ABL Facility, the revolving credit facility has been increased from $300 million to $325 million, with an accordion feature to increase the revolving credit facility by up to an additional $125 million, and the maturity date has been extended from June 2017 to May 2021. The amended ABL Facility also provides Nortek more favorable pricing and greater flexibility under many of the operational covenants in the agreement.

Matthew Hughes, Nortek's Vice President and Treasurer, stated: "We are very pleased with the additional flexibility our amended facility provides and believe the increase in size and improved terms speak to Nortek's financial strength. The amended facility, combined with our strong cash flow, provides us with the necessary flexibility to continue the execution of our business strategy."

Bank of America and Wells Fargo Capital Finance, part of Wells Fargo & Company, acted as Joint Lead Arrangers for the amended ABL Facility. The syndicate for the facility also includes UBS AG, U.S. Bank, Barclays Bank PLC, Citibank, Citizens Business Capital, Credit Suisse AG and Royal Bank of Canada. UBS AG and U.S. Bank also acted as Co-documentation Agents.

About Nortek

Nortek is a global, diversified industrial company whose many market-leading brands deliver broad capabilities and a wide array of innovative, technology-driven products and solutions for lifestyle improvement at home and at work. Nortek's broad array of offerings includes ventilation products such as range hoods and bathroom fans, security and audio/video solutions, heating and cooling products, air management systems, and ergonomic and productivity solutions.

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.

Safe Harbor Statement

This press release includes statements that constitute "forward-looking" statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "intend," "may," "plan," "potential," "project," "seek," "should," "will," or "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on Nortek's current plans and expectations and involve risks and uncertainties, over which we have no control, that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. 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, readers are urged to carefully review and consider the reports and filings of Nortek with the Securities and Exchange Commission including the description of "risk factors" set forth under Item 1A in our Annual Report on Form 10-K and any further disclosures the Company makes on related subjects in subsequent reports filed with the SEC.

Contact Information

  • Contact:

    Michael Botelho
    Vice President, Strategy and Investor Relations
    Nortek, Inc.
    Email Contact