By Marisa Wong and Cristal Cody
Los Angeles, Aug. 11 – Avery Dennison Corp. disclosed more details of its $800 million sale of senior notes in two parts in an FWP filed Wednesday with the Securities and Exchange Commission.
Avery Dennison priced $300 million of 0.85% three-year notes at 99.991 to yield 0.853%, or a spread of 40 basis points to Treasuries. The 2024 notes were talked to yield in the 70 bps area over Treasuries.
The company priced $500 million of 2.25% notes due Feb. 15, 2032 at 99.592 to yield 2.294%, or a spread of 95 bps over Treasuries. The 2032 notes had price talk in the 120 bps area over Treasuries.
The tranches were initially expected to be evenly sized, based on details provided by a market source.
Both tranches feature a make-whole call and then a par call.
Goldman Sachs & Co. LLC, BofA Securities Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used for the company’s planned acquisition of CB Velocity Holdings, LLC (Vestcom) and for general corporate purposes.
Avery Dennison is a Pasadena, Calif.-based maker of pressure-sensitive materials, retail branding and information products and organization and identification products.
| Issuer: | Avery Dennison Corp.
|
| Issue: | Senior notes
|
| Amount: | $800 million
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| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank and Loop Capital Markets LLC
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 18
|
| Distribution: | SEC registered
|
|
|
| 2024 notes
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| Amount: | $300 million
|
| Maturity: | Aug. 15, 2024
|
| Coupon: | 0.85%
|
| Price: | 99.991
|
| Yield: | 0.853%
|
| Spread: | Treasuries plus 40 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps prior to Aug. 15, 2022; par call after that
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| 2032 notes
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| Amount: | $500 million
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| Maturity: | Feb. 15, 2032
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| Coupon: | 2.25%
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| Price: | 99.592
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| Yield: | 2.294%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps prior to Nov. 15, 2031; par call after that; special mandatory redemption at 101
|
| Price talk: | Treasuries plus 120 bps area
|
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