PROVIDENCE, RI, July 15, 1998-Nortek, Inc.(NYSE:NTK) today announced a $150,000,000 Rule 144A Senior Notes offering. Gross proceeds from the Senior Notes offering, scheduled for completion by the end of July 1998, together with the Company's available cash, which includes approximately $64,300,000 raised through the recent public offering of 2,182,500 shares of the Company's common stock, are expected to be used to finance the acquisition of NuTone Inc., a wholly-owned subsidiary of Williams plc.

The Senior Notes have not been registered under the Securities Act of 1933, as amended, or under the securities law of any state and may not be offered or sold in the United States or in any such state absent an applicable exemption from registration under the Securities Act and any such law.

On or about June 29, 1998, in connection with the acquisition of NuTone, Nortek executed an Agreement Containing Consent Order with the Federal Trade Commission providing for the divestiture of the Company's M&S Systems LP subsidiary, which manufactures hard-wired intercom systems. The Company has been informed that the FTC staff is recommending the approval of the FTC Order by the FTC Commissioners. The proposed FTC Order must be provisionally accepted by the FTC Commissioners before the acquisition of NuTone can be consummated.

The Company has also filed a Current Report on Form 8-K today with the Securities and Exchange Commission. The Current Report contains additional information concerning the FTC Order as well as additional transactions the Company has recently completed or is contemplating.

Nortek is a leading international manufacturer and distributor of high-quality, competitively priced building, remodeling and indoor environmental control products for the residential, commercial and industrial markets. The Company offers a broad array of products for improving where people live and work, including range hoods and home ventilating products, heating and air conditioning systems, windows, doors and vinyl siding products, air quality systems, and specialty electronic, wood and decorating products.


This release contains forward-looking statements relating to future financial results. Actual financial performance may differ as a result of factors over which the Company has no control. Additional information which could affect the company's financial results is included in the Company's Securities and Exchange Commission filings, copies of which are available from Nortek at no charge.

# # #

  

[ Back To News ] [ Back To News Archive ]