Nortek Completes Major Refinancing

Nortek completed a major refinancing, issuing $500 million in 8.50% Senior Notes due 2021 and entering into a new $350 million Senior Secured term loan. The proceeds were used to refinance $753 million of 11% Senior Secured Notes due 2013, providing approximately $22 million of annual cash interest savings.

“On April 26, 2011, Nortek issued, in a private placement, $500 million in aggregate principal amount of 8.50% Senior Notes (the “Notes”) due 2021 and entered into a new 6-year $350 million Senior Secured term loan (“Term Loan”) with an interest rate of LIBOR plus 4% with a LIBOR floor of 1.25%. The net proceeds of the Notes and Term Loan were used to refinance Nortek's $753 million of 11% Senior Secured Notes due 2013.”

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