Narrative
Full Description
Project narrative
On November 8, 2017, financial close was reached on a deal in which a syndicate of 12 banks — including Bank of China — entered into an $800,000,000 USD syndicated loan agreement with Avery Dennison Corporation — a California-based materials science and manufacturing company known for labeling and packaging solutions — for general corporate and working capital purposes. The maturity of the loan is 5 years and the interest rate was LIBOR plus an applicable margin. The proceeds were used by the borrower for general corporate and working capital purposes — covering both long-term strategic initiatives and short-term financial obligations such as payroll and inventory. While Bank of China contributed $50,000,000 USD to this loan (Record ID#109088), the following lenders also participated: Bank of America, N.A. ($98,333,333.34 USD), Citibank, N.A. ($98,333,333.33 USD), JPMorgan Chase Bank, N.A. ($98,333,333.33 USD), HSBC Bank USA, National Association ($70,000,000 USD), Standard Chartered Bank ($70,000,000 USD), Mizuho Bank, Ltd. ($70,000,000 USD), Sumitomo Mitsui Banking Corporation ($70,000,000 USD), Goldman Sachs Bank USA ($50,000,000 USD), The Bank of Tokyo-Mitsubishi UFJ, Ltd. ($50,000,000 USD), Wells Fargo Bank, National Association ($50,000,000 USD), and The Northern Trust Company ($25,000,000 USD). On February 13, 2020, financial close was reached on a deal in which a syndicate of 9 banks — including Bank of China — entered into an $800,000,000 USD syndicated loan agreement with Avery Dennison Corporation — a California-based materials science and manufacturing company known for labeling and packaging solutions — for general corporate and working capital purposes. The maturity of the loan is 5 years and the interest rate was LIBOR plus an applicable margin. The proceeds were used by the borrower for general corporate and working capital purposes — providing the company with flexible funding for strategic and day-to-day operational needs. While Bank of China contributed to this loan (Record ID#109089), the following lenders also participated: Bank of America, N.A., Citibank, N.A., JPMorgan Chase Bank, N.A., HSBC Bank USA, National Association, Mizuho Bank, Ltd., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and Goldman Sachs Bank USA. Contribution amounts were not disclosed.
Staff comments
1. The entirety of the 2020 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/8818/000110465920021783/tm207995d1_ex10-1.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/dhfbmh439xhpz5jnp0mge/Source_ID_221696.pdf?rlkey=k2lb8uk7ni2c1y9rk8vgq4p9b&st=f8ft0ugn&dl=0 2. Avery Dennison Corporation is an American materials science and manufacturing company headquartered in Glendale, California. It is known for its pressure-sensitive adhesive materials, labels, and packaging materials used in various industries including retail, logistics, and healthcare. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in November 2017 and an applicable margin based on credit ratings (BBB or 1.015%). 4. The individual contributions of the 9 lenders to this $800 million USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of Bank of China by assuming that each lender contributed an equal amount ($88,888,888.89 USD) to the loan syndicate. 5. The entirety of the 2008 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/8818/000095013408014388/v42547exv10w1.htm. The dropbox link is accessible: https://www.dropbox.com/scl/fi/9x5tmetzxm90mqfc99h88/Source_ID_221694.pdf?rlkey=5etga3f2k6ftf09pqivqysb89&st=rb7km6wc&dl=0