Avery Dennison says 75 percent took exchange offer

Label and office products maker Avery Dennison Corp. said that 75 percent of it Corporate HiMEDS Units were tendered for stock and cash during an offer that expired early Wednesday morning.

The company said the offer was expected to result in the issuance of 6.45 million shares of stock. It has about 106 million shares.

It will also let the company retire about $330.7 million of senior notes that are part of the units, and result in the payment of $43 million in cash to holders who tendered their units.

The offer is expected to settle on March 10.

The Pasadena-based company said its exchange agent said 6.61 million units were tendered and not withdrawn.

The company's margins have been squeezed by falling sales volumes and higher raw material costs, and fourth-quarter profit slumped 46 percent. In January, Moody's Investors Service indicated it might lower ratings on the company's senior unsecured debt.

The shares rose 79 cents, or 4.3 percent, to $19 in afternoon trading. They have ranged from $18.13 to $53.74 in the past year.