ROCHESTER, NH - Albany International Corp . (NYSE:AIN) has updated the terms of its credit agreement, a move that adjusts the interest rate benchmark for its Canadian Dollar-denominated borrowings. The amendment, which was finalized on June 28, 2024, introduces the Adjusted Term CORRA as the new benchmark, replacing the previous CDO Rate.
The First Amendment to the Amended and Restated Credit Agreement, originally dated August 16, 2023, was signed by the company and JPMorgan Chase (NYSE:JPM) Bank, N.A., serving as the Administrative Agent. The change includes a credit spread adjustment of 0.29547% for loans with one-month interest periods and 0.32138% for loans with three-month interest periods.
This modification reflects an ongoing shift in financial markets away from traditional benchmarks towards more reliable and transparent alternatives. The Adjusted Term CORRA is expected to provide a more stable and predictable basis for calculating interest rates on loans.
The full details of the First Amendment will be disclosed in Albany International's Quarterly Report on Form 10-Q for the quarter ending June 30, 2024. The company, headquartered at 216 Airport Drive in Rochester, New Hampshire, operates in the manufacturing sector, specifically within the broadwoven fabric mills, man-made fiber, and silk industry.
Investors and stakeholders of Albany International can anticipate the company's adherence to the updated financial terms in its future financial activities. This strategic financial decision is indicative of Albany International's proactive approach to managing its credit facilities in alignment with market developments.
This news is based on a press release statement and the company's recent SEC filing.
In other recent news, Albany International Corp has experienced a mix of challenges and successes. The company reported solid first-quarter results for 2024, with significant growth in its Machine Clothing and Engineered Composites segments, primarily driven by the integration of Heimbach.
Despite a slight dip in organic demand in Europe, the company saw strong performance in North America. Albany International also reaffirmed its full-year guidance, demonstrating confidence in its ability to meet financial targets.
However, BofA Securities recently adjusted its outlook on Albany International, reducing the price target on the company's shares while maintaining an Underperform rating. This revision follows concerns about the lack of organic growth in the Machine Clothing division, attributed to ongoing weakness in Europe and a slow recovery in Asia.
The Albany Engineered Composites segment is also facing challenges due to a decrease in LEAP engine production, low production rates of the 737MAX, and an oversupply of LEAP fan blades.
Despite these challenges, Albany International is seen to have a favorable outlook in the defense sector, mainly due to increased involvement with the CH-53K helicopter. However, potential growth restrictions could arise from delays in the F-35 program and possible postponements in funding for the Joint Air-to-Surface Standoff Missile. These are some of the recent developments surrounding Albany International.
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