Albany to issue notes, cash in exchange for some 2.25% convertibles

By Angela McDaniels

Tacoma, Wash., April 8 - Albany International Corp. said 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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