Avery Dennison raises revolver to $1.2 billion, transitions benchmark

Chicago, Jan. 30 – Avery Dennison Corp. amended its credit agreement with Bank of America, NA as administrative agent on Jan. 24, according to an 8-K filing with the Securities and Exchange Commission.

The amended facility added an additional $400 million of commitments to raise the revolving credit facility to $1.2 billion.

The maturity date has been extended one year, an option in the agreement. The facility now matures on Feb. 13, 2026.

Additionally, the revised credit agreement replaces the Libor benchmark rate with currency-based updates such as SOFR, Sonia or Euribor.

The margins for SOFR are 79.5 basis points to 127.5 bps, based on a five-tier pricing grid that will be determined by the borrower’s ratings.

The initial rate is SOFR plus 101.5 bps.

The facility is between 8 bps and 22.5 bps, also based on ratings. The initial facility fee is 11 bps.

Mizuho Bank Ltd. is the syndication agent.

Citibank, NA and JPMorgan Chase Bank, NA are the documentation agent.

BofA Securities, Inc., Mizuho Bank, Ltd., Citibank and JPMorgan were joint lead arrangers and joint bookrunners on the Feb. 13, 2020 original agreement.

Avery Dennison is a Mentor, Ohio.-based maker of pressure-sensitive materials, retail branding and information products and organization and identification products.

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