Credit: Shutterstock photoAvery Dennison CorporationAVY unveiled the pricing of €500 million ($528 million) of 1.250% Senior Notes due 2025. The underwritten public offering has been priced at 99.917% of the principal amount. The offering is expected to close on Mar 3.
The company will use approximately €200 million of the net proceeds from this offering to repay commercial paper borrowings which had been used to finance a portion of its acquisition of the European business of Mactac.
The remainder €300 million will be used for general corporate purposes. These may include repayment of other indebtedness, including its 6.625% Guaranteed Notes due 2017; acquisitions, such as the acquisitions of Hanita Coatings and Yongle Tape Company; capital expenditures, working capital, and other corporate purposes.
Avery Dennison Corporation Price
Avery Dennison Corporation Price | Avery Dennison Corporation Quote
Moody's Investors Service - the rating unit of Moody's Corp. (MCO) - assigned a Baa2 rating to Avery Dennison's €500-million Senior Notes. This Baa2 rating reflects its stable earnings and cash generation that support its solid liquidity profile.
At the end of 2016, Avery Dennison generated cash and cash equivalents of $195 million, which jumped from $158.8 million as of Jan 2, 2016. Avery Dennison's long-term debt decreased to $713.4 million in 2016, compared with $963.6 million at the end of 2015.
Avery Dennison's balance sheet remains strong and it has ample capacity to continue funding acquisitions as well as returning cash to shareholders. The company repurchased 3.8 million shares in 2016 at a cost net of proceeds from stock options of $191 million and paid $143 million in dividends.
Year to date, the Zacks categorized Office Supply & Forms industry has registered growth of 12.3%. However, shares of Avery Dennison have outperformed the industry by gaining 14.3%.
Avery Dennison currently carries a Zacks Rank #2 (Buy).
Key Picks
Some other favorably placed stocks in the same space include ACCO Brands Corporation ACCO , Deere & Company DE and II-VI Incorporated IIVI . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
ACCO Brands has a positive average earnings surprise of 24.74% for the last four quarters. Deere & Company generated a positive average earnings surprise of 60.50% over the trailing four quarters. II-VI Incorporated has delivered an average positive earnings surprise of 59.23% in the past four quarters.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
