Avery Dennison closes $675 million revolver via BofA, Citi, JPMorgan

By Susanna Moon

Chicago, Dec. 27 - Avery Dennison Corp. entered into an amended credit agreement last Thursday for up to $675 million of five-year revolving loans with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, Citigroup Global Markets Inc. and JPMorgan Chase Bank, NA are the joint lead arrangers and bookrunners.

The total commitments may be increased by up to $250 million, and the maturity date may be extended from Dec. 22, 2016 for one-year periods.

Interest on loans will accrue at Libor plus 87.5 basis points to 165 bps.

Commitment fees will range from 12.5 bps to 35 bps.

Citibank, NA is the syndication agent, and JPMorgan Chase Bank, NA is the documentation agent.

The agreement amends and restates the company's facility dated Aug. 10, 2007.

The loans may be prepaid in whole or in part without premium or penalty, and the company may reduce or terminate the commitments to make the loans.

Covenants require the company to maintain a maximum leverage ratio, of consolidated debt to consolidated EBITDA, of no more than 3.5 times and a minimum interest coverage ratio, of consolidated earnings before interest and taxes to consolidated interest expense, of at least 3 times.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.