Item 1.01 Entry into a Material Definitive Agreement.
On February13, 2020,
Under the Credit Agreement, the Company may borrow up to an aggregate of
Loans outstanding under the Credit Agreement bear interest, at the Company's option, at the base rate or the Eurocurrency rate, in each case plus an applicable per annum margin. The applicable per annum margin is determined based on the Company's debt ratings in accordance with a pricing grid, with the per annum margin for base rate borrowings ranging from 0.00% to 0.275% and the per annum margin for Eurocurrency rate borrowings ranging from 0.795% to 1.275%. The terms "base rate" and "Eurocurrency rate" have meanings customary for financings of this type. Fees payable for the revolving commitments under the Credit Agreement, whether used or unused, are also determined based on the Company's debt ratings in accordance with a pricing grid, with the per annum percentage ranging from 0.080% to 0.225%.
The Loans may, at the Company's option, be prepaid in whole or in part without premium or penalty (except for breakage costs for Eurocurrency rate loans) and the Company may reduce or terminate the commitments of the lenders to make the Loans.
The Credit Agreement contains customary affirmative and negative covenants,
including limitations on mergers, asset sales, liens, investments, and
subsidiary indebtedness. In addition, the Credit Agreement requires the Company
to maintain a maximum leverage ratio (calculated as a ratio of consolidated debt
to consolidated EBITDA) of not more than 3.50 to 1.00; provided that, in the
event of an acquisition by the Company that exceeds
The summary of the Credit Agreement contained herein is qualified in its entirety by reference to the terms of the Credit Agreement, a copy of which is filed as Exhibit 10.1 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 is incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits. Exhibit Number Exhibit Title 10.1 Fifth Amended and Restated Credit Agreement, dated as ofFebruary 13, 2020 , by and amongAvery Dennison Corporation , as the borrower,Bank of America, N.A ., as administrative agent,Citibank, N.A ., as syndication agent,JPMorgan Chase Bank, N.A ., as documentation agent, and the other lenders party thereto. 104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). Forward-Looking Statements
This Form 8-K contains forward-looking statements, including statements related
to the expected use of proceeds from the Credit Agreement, which are based on
the Company's current expectations, forecasts and assumptions that involve risks
and uncertainties that could cause actual results to differ materially from any
future results, performance or achievements expressed or implied by these
forward-looking statements. These risks and uncertainties include, without
limitation, risks related to the fact that the Company's management will have
discretion in its use of the proceeds. The Company refers you to the documents
it files with the
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