Business Context and Reporting Period
Company: Avery Dennison Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 10, 2007
Event: Amendment to revolving credit agreement.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity ratios. It focuses exclusively on debt facility capacity.
- Revolving Credit Commitment: Increased from $525 million to $1 billion.
- Outstanding Debt: $0 as of August 10, 2007.
- Facility Maturity: Extended to August 10, 2012.
- Lenders: 12 domestic and foreign banks.
Material Changes
The primary material change is the expansion of the company's borrowing capacity. The revolving credit agreement was amended to double the available commitments from $525 million to $1 billion. The maturity date was extended by five years to August 10, 2012. Other terms remain substantially similar to the prior agreement.
Outlook, Risks, and Management Commentary
Intended Use: The facility will serve as a back-up for commercial paper and finance other corporate requirements.
Management Commentary: The filing notes that no debt was outstanding under the agreement at the time of the amendment. No specific risks, contingencies, or unusual items were disclosed in this report.
Investor Verification Checklist
- Verify the total debt load and leverage ratios in the most recent 10-Q or 10-K to assess the utilization of the new $1 billion facility.
- Confirm the interest rate structure and fees associated with the amended credit agreement.
- Review the company's commercial paper issuance history to understand the necessity of the back-up facility.
- Check for any covenants in the new agreement that may restrict future capital allocation or acquisitions.