8-KOther Events

AVALONBAY COMMUNITIES INC 8-K Report (May 11, 2001)

Filed May 11, 2001For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) has announced the redemption of all outstanding shares of its 9.00% Series F Cumulative Redeemable Preferred Stock. The redemption will occur on June 11, 2001, with each share being repurchased at a price of $25.00, plus an additional $0.1625 for accrued and unpaid dividends. This brings the total aggregate redemption price to $25.1625 per share. This action signifies a strategic move by the company to manage its capital structure, likely aimed at reducing its cost of capital or simplifying its outstanding debt and equity instruments. Investors holding the Series F Preferred Stock should be aware of this mandatory redemption and the final payment they will receive. The company has provided a press release and a formal Notice of Redemption as exhibits to this filing for further details.

Key Highlights

  • 1AvalonBay Communities, Inc. is redeeming all its 9.00% Series F Cumulative Redeemable Preferred Stock.
  • 2The redemption date is set for June 11, 2001.
  • 3The redemption price per share is $25.00.
  • 4An additional amount of $0.1625 per share will be paid for accrued and unpaid dividends.
  • 5The total payment per share for Series F Preferred Stock will be $25.1625.
  • 6This announcement is made via a Form 8-K filing dated May 11, 2001.
  • 7Exhibits include a press release dated May 9, 2001, and a Notice of Redemption dated May 11, 2001.

Frequently Asked Questions

AvalonBay Communities, Inc. is redeeming (buying back) all of its outstanding 9.00% Series F Cumulative Redeemable Preferred Stock.

The redemption will occur on June 11, 2001. Each share of Series F Preferred Stock will be redeemed for $25.00, plus $0.1625 in accrued and unpaid dividends, making the total payment $25.1625 per share.

While the filing does not explicitly state the reason, companies typically redeem preferred stock to reduce their cost of capital, refinance at lower rates, simplify their capital structure, or reallocate capital to other strategic initiatives.

Investors holding the Series F Preferred Stock should refer to the official Notice of Redemption and the accompanying press release (filed as exhibits to this Form 8-K) for specific instructions on how to receive their redemption payment.