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U.S. SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: December 10, 2007
(Date of earliest event reported)
ALBANY INTERNATIONAL CORP.
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(Exact name of registrant as specified in its charter)
Delaware 0-16214 14-0462060
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State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1373 Broadway, Albany, New York 12204
(518) 445-2200
(Address and telephone number of the registrant's principal executive offices)
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13a-4(c))
Item 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On December 10, 2007, the Registrant and Bank of America entered into a US
dollar-to-Euro cross-currency and interest rate swap agreement with a notional
value of $150 million. The Registrant has designed the swap to be an effective
hedge of its Euro net asset exposure relating to European operations.
Under the swap agreement, the Registrant has notionally exchanged $150 million
at a fixed interest rate of 5.34% for Euro 101,950,655.88 at a fixed interest
rate of 5.28%. The exchange was executed at an exchange rate of 1.4713 US
dollars per Euro.
The majority of the cash flows in the swap agreement are aligned with the
Registrant's principal and interest payment obligations on its $150 million
private placement with Prudential Capital with a fixed annual interest rate of
5.34% paid quarterly. This term debt has a maturity date of October 25, 2017,
with mandatory prepayments of $50 million on October 25, 2013 and $50 million on
October 25, 2015. The final maturity of the swap matches the final maturity of
the Prudential private placement.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ALBANY INTERNATIONAL CORP.
By: /s/ Michael C. Nahl
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Name: Michael C. Nahl
Title: Executive Vice President
and Chief Financial Officer
(Principal Financial Officer)
Date: December 13, 2007