AvalonBay Communities Completes $600 Million Medium-Term Notes Offering
AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”)
announced today that on May 22, 2020 it completed a $600 million
offering of unsecured notes (the “Notes”) with a maturity of
January 15, 2031 under its existing shelf registration statement.
Details of the transaction are set forth in the table below:
Principal Amount Maturity Date Issue
Price Coupon Rate Yield to Investors
2.450% Notes due 2031
January 15, 2031
The effective interest rate of the notes is 2.646%, including
the impact of a prior interest rate hedge and offering costs.
Interest on the notes will be paid semi-annually on January 15
and July 15, with the first payment to be made on July 15,
The Company used the net proceeds, after estimated issuance
costs, of approximately $592.4 million from the sale of the Notes
to redeem its Floating Rate Notes due 2021 (the "2021 Notes") in
the aggregate principal amount of $300 million, plus accrued
interest to the date of redemption. The redemption date for the
2021 Notes was May 23, 2020. The Company will use the proceeds from
the sale of the Notes that were not used to redeem the 2021 Notes
for general corporate purposes, which may include the acquisition,
development and redevelopment of apartment communities and
repayment and refinancing of other indebtedness, which may include
indebtedness outstanding under our $1,750,000,000 unsecured
revolving credit facility.
After giving effect to these transactions, the Company will have
approximately $100 million of debt maturities and amortization,
excluding bond redemptions from previously funded principal reserve
accounts, remaining before 2022, consisting of approximately $70
million of secured debt maturities and amortization remaining in
2020, and approximately $30 million of secured debt maturities and
amortization in 2021.
About AvalonBay Communities, Inc.
As of March 31, 2020, the Company owned or held a direct or
indirect ownership interest in 296 apartment communities containing
86,596 apartment homes in 11 states and the District of Columbia,
of which 19 communities were under development. The Company is an
equity REIT in the business of developing, redeveloping, acquiring
and managing apartment communities in leading metropolitan areas in
New England, the New York/New Jersey Metro area, the MidAtlantic,
the Pacific Northwest, and Northern and Southern California, as
well as in the Company's expansion markets consisting of Southeast
Florida and Denver, Colorado. More information may be found on the
Company’s website at http://www.avalonbay.com.
version on businesswire.com: https://www.businesswire.com/news/home/20200526005061/en/
Jason Reilley Vice President Investor Relations AvalonBay
Communities, Inc. 703-317-4681