Albany International Corp. (NYSE: AIN) today announced that it is exercising its option to redeem all remaining outstanding 2.25% Convertible Senior Notes due 2026 (the “Notes”), of which an aggregate of $28.437 million in principal amount is outstanding. The redemption date will be March 15, 2013. The Notes will be redeemed at a price of 100% of the principal amount thereof, plus accrued and unpaid interest, including additional interest, if any, to the redemption date. The amount of interest that will be payable with respect to the Notes on the redemption date is $11.25 per $1,000 principal amount of the Notes.
If the trustee for the Notes (acting as Paying Agent) holds money sufficient to redeem on the redemption date all the Notes, then on and after the redemption date (i) such Notes will cease to be outstanding, (ii) interest, including additional interest, if any, will cease to accrue, and (iii) all other rights of the holders of such Notes will terminate (whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the trustee) other than the right to receive the redemption price upon delivery of the Notes.
Payment of the redemption price and surrender of the Notes for redemption will be made through the facilities of and in accordance with the procedures of The Depository Trust Company. Notes must be surrendered to the trustee for the Notes (as Paying Agent) to collect the Redemption Price.
In lieu of redemption, Notes may be converted at any time before the close of business on the second Business Day immediately prior to the Redemption Date (i.e., 5:00 p.m., New York City time, on March 13, 2013). The current conversion rate of the Notes is 23.2078 shares of the Company’s Class A Common Stock per $1,000 principal amount of Notes. Any holder wishing to convert his or her Notes must satisfy the requirements for conversion set forth in the Notes and the indenture relating thereto. Notes surrendered for conversion will be settled in cash (and, if applicable, shares) in accordance with the provisions of the Notes and the indenture related thereto.