Avery Dennison said it entered into a credit agreement on June 26, 2024 with Mizuho Bank, Ltd. as administrative agent, under which it can borrow up to $1.2 billion in revolving loans.

1. 01

   Avery Dennison said it entered into a credit agreement on June 26, 2024 with Mizuho Bank, Ltd. as administrative agent, under which it can borrow up to $1.2 billion in revolving loans.

2. 02

   The company said the new agreement refinances its Fifth Amended and Restated Credit Agreement dated February 13, 2020, matures on June 26, 2029, and allows commitments to be increased by up to $600 million upon request, at the discretion of lenders.

3. 03

   The company said the applicable margins are based on its debt ratings under a pricing grid, ranging from 0.000% to 0.300% for base rate loans and from 0.795% to 1.300% for Term SOFR or Alternative Currency loans, and that revolving commitment fees range from 0.080% to 0.200% per annum.

4. 04

   The company said it must maintain a maximum leverage ratio of no more than 3.50 to 1.00, and that for an acquisition exceeding $250 million, the ratio increases to 4.00 to 1.00 for the fiscal quarter in which the acquisition occurs and the following 3 consecutive fiscal quarters.

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