Avery Dennison Corporation
) has unveiled the pricing of $250 million of 3.35% Senior Notes
due 2023. The underwritten public offering has been priced at
99.898% of the principal amount.
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Avery will use the net proceeds from the offering to repay the
existing debt under its commercial paper program. Depending on
customary closing conditions, the offering is expected to close
on Apr 8, 2013.
Merrill Lynch - a subsidiary of
Bank of America Corporation
), Pierce, Fenner & Smith Incorporated, J.P. Morgan
Securities LLC - a wing of
JPMorgan Chase & Co.
), RBS Securities Inc. and Wells Fargo Securities, LLC - a unit
Wells Fargo & Company
), will serve as joint book-running managers for the notes
offering, while HSBC Securities (USA) Inc. and Mitsubishi UFJ
Securities (USA), Inc. will act as co-managers.
Avery's total debt increased around $41 million in 2012 to $1.22
billion compared with $1.18 billion in 2011, reflecting an
increase in commercial paper borrowings to support operational
requirements and fund share repurchases. Avery had cash and cash
equivalents of $235.4 million as of Dec 31, 2012.
Moreover, debt to total capitalization stood at 43.6% in 2012, an
increase of roughly 200 basis points from 2011. The company has
$251.9 million of debt maturities due in 2013.
Pasadena, Calif-based Avery manufactures pressure-sensitive
materials, tickets, tags, labels and other converted products.
Avery has over 200 manufacturing and distribution facilities
encompassing more than 60 countries. Its clientele is spread
across the U.S., Europe, Asia, Latin America and other regions.
With the divestiture of the underperforming Office and Consumer
Products unit, Avery will be able to focus on its market-leading,
pressure-sensitive materials business and Retail Branding and
Information Solutions segment.
Avery currently retains a short-term Zacks Rank #2 (Buy).