Avery Dennison Corp. 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Avery Dennison Corporation on January 14, 2003. The report details a significant capital market transaction involving the issuance of senior notes pursuant to a previously effective shelf registration statement (Form S-3) filed in July 2001.
Key Financial Metrics and Transaction Details
The Company initiated an offering of senior notes with the following terms:
- Notes due 2013: $250,000,000 aggregate principal amount at an interest rate of 4.875%.
- Notes due 2033: $150,000,000 aggregate principal amount at an interest rate of 6.000%.
- Total Offering Size: $400,000,000 aggregate principal amount.
- Expected Closing Date: On or about January 17, 2003.
- Underwriters: Goldman, Sachs & Co., Salomon Smith Barney Inc., Banc of America Securities LLC, J.P.Morgan Securities Inc., and Wachovia Securities, Inc.
The filing text does not provide specific values for revenue, profit, cash flow, operating margins, or existing liquidity positions as this is a transactional report rather than a periodic financial statement.
Material Changes
The primary material change is the increase in long-term debt obligations resulting from the new note issuance. This transaction utilizes the shelf registration declared effective on July 12, 2001, which allowed for up to $600,000,000 in securities offerings.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on operational outlook, or specific risk factors beyond the standard terms of the debt indenture. The transaction is governed by an Indenture dated July 3, 2001, with J.P.Morgan Trust Company, National Association, as trustee.
Key Facts for Investor Verification
- Verify the final closing date and net proceeds received after underwriting discounts and expenses.
- Review the specific covenants and restrictions within the Indenture dated July 3, 2001, and the Officer's Certificate.
- Confirm the impact of the new $400 million debt load on the Company's leverage ratios and interest coverage.
- Check subsequent filings for the actual delivery of the Notes and the use of proceeds.