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Albany holders to exchange 2.25% convertibles for new notes and cash
By Susanna Moon
Chicago, May 22 - Albany International Corp. holders agreed to exchange some of the company's 2.25% convertible senior notes due 2026 for new notes plus cash and accrued interest, according to an 8-K filing with the Securities and Exchange Commission.
Albany also agreed to repurchase all of the new notes on the closing dates for $31.6 million.
Citadel Equity Fund Ltd. and two other parties will exchange $50.5 million principal amount of the 2.25% convertibles for an equal amount of new 2.25% convertible senior notes due 2026 plus $7.50 per $1,000 principal amount in cash and accrued interest.
Settlement for $35.5 million will occur on July 1, and the rest will close on Oct. 1.
The company entered into an agreement with noteholders on May 21.
The company said on April 8 that J.P. Morgan Securities Inc. agreed on Monday to exchange up to $93.98 million principal amount of the company's 2.25% convertible senior notes due 2026 for an equivalent amount of new 2.25% senior notes due 2026.
JPMorgan will also receive a cash payment of $7.50 per $1,000 principal amount of convertibles, according to an 8-K filing with the Securities and Exchange Commission.
Also on Monday, the companies entered into another agreement under which JPMorgan will sell the new 2.25% notes back to Albany for up to $52.8 million in cash.
Albany noted that JPMorgan is an affiliate of JPMorgan Chase Bank, NA, which is a lender and the administrative agent under the company's $460 million revolving credit facility.
In addition, Albany reported in the 8-K filing that it exchanged $7.07 million of the convertibles in a private transaction with a different party on March 17. The party received an equivalent amount of the new 2.25% notes and $50,000 of cash.
Albany agreed to purchase these new 2.25% notes from the party for $3.31 million.
Albany, N.Y.-based Albany International makes consumable parts for paper-making machines and industrial doors.
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