Avery Dennison enters into $800 million amended, restated revolver

By Sarah Lizee

Olympia, Wash., Feb. 14 – Avery Dennison Corp. amended and restated its credit agreement with Bank of America, NA as administrative agent on Thursday, providing for up to $800 million in revolving loans, according to an 8-K filing with the Securities and Exchange Commission.

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

Commitments may be increased by up to $400 million upon the company’s request and subject to conditions.

The credit agreement matures Feb. 13, 2025, subject to a one-year extension.

Interest is Libor plus 79.5 basis points to 127.5 bps and the commitment fee is 8 bps to 22.5 bps, in each case based on the company’s debt ratings.

The credit agreement requires the company to maintain a maximum leverage ratio of not more than 3.5 to 1.0, provided that, in the event of an acquisition by the company that exceeds $250 million, the maximum leverage ratio will increase to 4 to 1 for the fiscal quarter in which that acquisition occurs and the period of three consecutive fiscal quarters immediately following that fiscal quarter.

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

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