8-KMaterial AgreementsFinancial EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K Report, Material Agreement (Nov 16, 2007)

Filed November 16, 2007For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) has amended its existing $650 million revolving credit facility to increase the aggregate size to $1 billion. This significant expansion was achieved through an increase in loan commitments from thirteen existing banks within the syndicate, with no new lenders joining the facility. The amendment was effective as of November 13, 2007. This move enhances AVB's financial flexibility and access to capital. The credit facility's terms, including its four-year maturity (with a one-year extension option) and the underlying pricing structure based on LIBOR plus a spread, remain largely unchanged. The company will now pay an annual facility fee of 0.125% on the increased $1 billion commitment. The amendment confirms AVB's ability to secure substantial financing, which is crucial for its ongoing development, acquisition, and operational activities in the real estate sector.

Key Highlights

  • 1AVB increased its revolving credit facility from $650 million to $1 billion.
  • 2The increase was effectuated by existing syndicate banks increasing their loan commitments.
  • 3No new banks or third parties joined the credit facility for this increase.
  • 4The credit facility term remains four years from November 14, 2006, with a one-year extension option.
  • 5The pricing structure remains LIBOR plus a spread, with the current stated rate being LIBOR + 0.40%.
  • 6An annual facility fee of 0.125% will be paid on the new $1 billion facility size.
  • 7The facility is subject to customary covenants, including leverage and coverage ratios.

Frequently Asked Questions

This 8-K filing announces the amendment and increase of AvalonBay Communities, Inc.'s revolving credit facility, raising its total capacity from $650 million to $1 billion. This demonstrates the company's enhanced access to liquidity.

The increase was provided by thirteen banks that were already part of the existing credit facility syndicate. No new lenders were added.

No, the terms of the credit facility remain largely unchanged. The maturity date, extension options, interest rate structure (LIBOR plus a spread), and covenants are the same. The only notable changes are the increased aggregate size and the associated annual facility fee on the larger amount.

As of November 13, 2007, $205,000,020 was outstanding on the line, $57,224,977 was used for letters of credit, leaving $737,775,003 available for borrowing under the new $1 billion facility.