By Cristal Cody
Chicago, March 7 – Avery Dennison Corp. priced $400 million of 5.75% 10-year senior notes (Baa2/BBB) on Monday, according to a news release and a follow-up FWP filed with the Securities and Exchange Commission.
The notes priced at a 99.557 discount to yield 5.809%, or at Treasuries plus 183 basis points. Initial talk was in the Treasuries plus 205 bps area. Guidance tightened to the Treasuries plus 185 bps area, plus or minus 2 bps.
There is a make-whole call option for the issuer before Dec. 15, 2032 at a Treasuries plus 30 bps premium. After that date, the notes are callable at par.
BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, HSBC Securities (USA) Inc. and SMBC Nikko Securities America, Inc. are the joint bookrunners.
Proceeds will be used repay existing debt under the company’s commercial paper programs, to repay the $250 million aggregate principal amount of its 3.35% senior notes when they mature on April 15, 2023 and for general corporate purposes.
The adhesive manufacturing company is based in Mentor, Ohio.
| Issuer: | Avery Dennison Corp.
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| Amount: | $400 million
|
| Issue: | Senior notes
|
| Maturity: | March 15, 2033
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, HSBC Securities (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, PNC Capital Markets LLC, Loop Capital Markets LLC, Standard Chartered Bank and Academy Securities, Inc.
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Latham & Watkins LLP
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Coupon: | 5.75%
|
| Price: | 99.557
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| Yield: | 5.809%
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| Spread: | Treasuries plus 183 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps until Dec. 15, 2032; thereafter at par
|
| Trade date: | March 6
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| Settlement date: | March 15
|
| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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| Cusip: | 053611AN9
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| Price talk: | Treasuries plus 205 bps area
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