Albany International Corp. Prices $150 million 2.25% Convertible Senior Note Offering
08 Mars 2006 - 1:39AM
PR Newswire (US)
ALBANY, N.Y., March 7 /PRNewswire-FirstCall/ -- Albany
International Corp. (NYSE: AIN; PCX, FWB) announced today that it
has priced a private offering of $150 million aggregate principal
amount of 2.25% convertible senior notes due in 2026. The Company
has also granted the initial purchasers of the notes a 13-day
option, solely to cover over-allotments, to purchase up to an
additional aggregate $30 million of the notes. The sale of the
notes is expected to close on March 13, 2006, subject to customary
closing conditions. In January 2006, the Company announced that the
Board of Directors increased the Company's authorization to
repurchase shares of the Company's Class A common stock to 3.5
million shares, and the Company has already repurchased 663,700 of
such shares. The Company also announced that it has committed
approximately $77.2 million of the net proceeds of the offering to
repurchase approximately 2.1 million shares of the Company's Class
A common stock from investors in connection with the offering of
the notes and in private transactions through March 13, 2006. In
addition, the Company intends to use some of the net proceeds from
this offering to repurchase additional shares under the Board
authorization, in the open market and in private transactions. Any
such repurchases, however, are subject at all times to the
availability of such shares at prices and in quantities considered
by the Company to be advantageous to the Company's long- term
shareholders. Such repurchase activity may therefore not be
concluded for some time after the offering is concluded, if at all.
In addition, the Company intends to use approximately $12.2 million
of the net proceeds of the offering (assuming the initial
purchasers do not exercise their option to purchase additional
notes to cover over-allotments) to pay the costs associated with
the convertible note hedge and warrant transactions described
below. Any net proceeds not used for the foregoing purposes will be
used for general corporate purposes. The notes will be pari passu
with the Company's existing and future senior indebtedness, be
senior to the Company's future subordinated debt, if any, and be
effectively subordinated to the debt and other obligations of the
Company's subsidiaries. The notes will be convertible upon the
occurrence of specified events and at any time on or after February
15, 2013, into cash up to the principal amount of notes to be
converted and shares of the Company's Class A common stock with
respect to the remainder, if any, of the Company's conversion
obligation at an initial conversion rate of 22.462 shares per
$1,000 principal amount of notes (equivalent to an initial
conversion price of approximately $44.52 per share of Class A
common stock). The initial conversion price represents a premium of
approximately 20% to the $37.10 per share closing price of the
Company's Class A common stock on the New York Stock Exchange on
March 7, 2006. The notes will pay interest semiannually at a rate
of 2.25% per year and will mature on March 15, 2026. In addition,
the notes are redeemable at any time on or after March 15, 2013, at
a price of 100% of the principal amount of notes to be redeemed
plus accrued and unpaid interest. Holders of the notes will have
the option to require the Company to purchase the notes on March
15, 2013, and March 15, 2021, and in certain other circumstances,
at a price of 100% of the principal amount of notes to be redeemed
plus accrued and unpaid interest. In connection with the offering,
the Company has entered into convertible note hedge and warrant
transactions in respect of its Class A common stock with affiliates
of certain of the initial purchasers of the notes. These
transactions are intended to reduce the potential dilution upon
future conversion of the notes by providing the Company with the
option, subject to certain exceptions, to acquire shares which
offset the delivery of newly issued shares upon settlement of
conversion of the notes. The other parties to such transactions
have advised the Company that they or their affiliates have entered
into various over-the-counter derivative transactions with respect
to shares of the Company's Class A common stock contemporaneously
or shortly after the pricing of the notes. In addition, the parties
or their affiliates may continue to purchase and may sell shares of
the Company's Class A common stock in secondary market transactions
and may enter into or unwind derivative transactions following the
pricing of the notes. This press release shall not constitute an
offer to sell or a solicitation of an offer to buy, nor shall there
be any sale of the notes or the Class A common stock issuable upon
conversion of the notes in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful. The notes will be
offered only to qualified institutional buyers in reliance on Rule
144A under the Securities Act of 1933, as amended (the "Securities
Act"). The notes and the shares of Class A common stock issuable
upon conversion of the notes have not been registered under the
Securities Act or any state securities laws, and may not be offered
or sold in the United States or to U.S. persons absent registration
or an applicable exemption from the registration requirements.
Albany International is the world's largest producer of paper
machine clothing with manufacturing plants strategically located to
serve its customers throughout the world. Founded in 1895, the
Company is headquartered in Albany, New York, and employs
approximately 5,900 people worldwide. Additional information about
the Company and its businesses and products is available at
http://www.albint.com/. Forward-looking statements in this release
are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such statements are based
on current expectations and are subject to various risks and
uncertainties, including, but not limited to, economic conditions
affecting the paper industry and other risks and uncertainties set
forth in the Company's 2005 Annual Report on Form 10-K and
subsequent filings with the U.S. Securities and Exchange
Commission. DATASOURCE: Albany International Corp. CONTACT: Kenneth
C. Pulver, Vice President-Global Marketing & Communications of
Albany International, +1-518-445-2214 Web site:
http://www.albint.com/
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