PROVIDENCE – Nortek Inc. on Wednesday disclosed that it has retained a top investment firm and a major law firm to advise it as it looks to restructure its debt burden.
In a brief statement, Nortek said its parent company, NTK Holdings, was in the process of “analyzing its capital structures” and had retained private equity giant The Blackstone Group and an international law firm, Weil, Gotshal & Manges, to assist with the effort.
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The two advisory firms will be contacting Nortek’s bondholders and debt-holders “as appropriate,” the company said.
NTK Holdings has $162.3 million in debt payments that will come due next year, including roughly $147.4 million due on March 1, while Nortek and its subsidiaries owe $164.5 million this year and $146.6 million next year, according to regulatory filings.
Despite those obligations, Richard L. Bready, Nortek’s chairman and CEO, sounded an upbeat note. “In consideration of the current economic environment, our businesses are performing well and we remain focused on operating as efficiently as possible and executing our strategic business plans,” Bready said in a statement.
In May, Nortek posted a net loss of $32.7 million in the quarter ended April 4 on revenue that declined 18.7 percent from a year earlier to $439 million. In 2008, Nortek posted a net loss of $780.7 million on $2.27 billion in total sales.
NTK Holdings Inc., a Delaware corporation with headquarters in Providence, is the parent company of Nortek Inc., founded in 1967. Nortek manufactures residential and commercial building products. Additional information is available at Nortek-Inc.com.
