Avery Dennison Corporation (AVY, Financial), a Delaware-based company, has successfully closed its previously announced issuance of €500 million aggregate principal amount of 3.750% senior notes due 2034. The net proceeds from this offering, after accounting for underwriting discounts and estimated expenses, amounted to approximately €495 million.
The company plans to utilize these proceeds to fully repay its €500 million aggregate principal amount of 1.250% senior notes due in 2025, which mature on March 3, 2025. Additionally, the funds will support general corporate purposes, enhancing the company's financial flexibility.
The offering was conducted under an effective Registration Statement on Form S-3, filed by Avery Dennison on April 22, 2022. The notes were issued under an indenture dated November 20, 2007, and supplemented by a tenth supplemental indenture dated November 4, 2024, with The Bank of New York Mellon Trust Company, N.A. serving as Trustee.
The notes, bearing an interest rate of 3.750% per annum, will mature on November 4, 2034, with interest payable annually starting November 4, 2025. Avery Dennison retains the option to redeem the notes, in whole or in part, at any time, subject to specific conditions outlined in the indenture.
In the event of a change of control triggering event, the company is obligated to offer to repurchase the notes at 101% of the principal amount, plus accrued interest. The notes are unsecured and unsubordinated obligations, ranking equally with all existing and future unsecured and unsubordinated indebtedness of the company.
This strategic financial maneuver underscores Avery Dennison's commitment to maintaining a robust capital structure while optimizing its debt portfolio to support ongoing corporate initiatives.
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