Avery Dennison closes $700 million amended, restated credit agreement

By Tali Rackner

Norfolk, Va., Oct. 3 – Avery Dennison Corp. entered into a $700 million third amended and restated credit agreement on Friday with Bank of America, NA as agent, according to an 8-K filing with the Securities and Exchange Commission.

The total commitments may be increased by up to $235 million, and the maturity date may be extended from Oct. 3, 2019 for additional one-year periods.

Borrowings bear interest at Libor plus 91 basis points to 170 bps. There is also a commitment fee ranging from 9 bps to 30 bps.

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

The credit agreement contains customary affirmative and negative covenants, including requiring Avery Dennison to maintain a maximum leverage ratio of 3.50 to 1.00 and a minimum interest coverage ratio of 3.00 to 1.00.

The agreement amends and restates the company's facility dated Dec. 22, 2011.

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.

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.