8-KOther EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K Report, Corporate Update (Jan 9, 2009)

Filed January 9, 2009For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) announced on January 9, 2009, that it has commenced a cash tender offer for any and all of its outstanding 7.50% Medium-Term Notes due August 1, 2009, and 7.50% Medium-Term Notes due December 15, 2010. The offer prices are set at $1,000 per $1,000 principal for the 2009 notes and $980 per $1,000 principal for the 2010 notes, in addition to accrued interest. This tender offer, detailed in the Offer to Purchase and Letter of Transmittal, aims to reduce the company's outstanding debt. The offer is set to expire on January 16, 2009, unless extended. The company plans to fund the repurchase using available cash and its unsecured revolving credit facility. Investors should note that tendered notes are expected to be cancelled. The filing also includes a press release as an exhibit detailing this announcement.

Key Highlights

  • 1AVB has launched a cash tender offer for all of its outstanding 7.50% Medium-Term Notes due August 1, 2009 ($140 million principal).
  • 2AVB has also launched a cash tender offer for all of its outstanding 7.50% Medium-Term Notes due December 15, 2010 ($200 million principal).
  • 3The purchase price for the 2009 notes is set at $1,000 per $1,000 principal amount.
  • 4The purchase price for the 2010 notes is set at $980 per $1,000 principal amount.
  • 5The tender offer includes payment for accrued and unpaid interest up to the payment date.
  • 6The offer is scheduled to expire on January 16, 2009, with the payment date expected the following business day.
  • 7The company intends to use available cash and its $1 billion revolving credit facility to fund the repurchases.

Frequently Asked Questions

AvalonBay Communities, Inc. is announcing the commencement of a cash tender offer to repurchase all of its outstanding 7.50% Medium-Term Notes due August 1, 2009, and 7.50% Medium-Term Notes due December 15, 2010.

The company is offering to purchase the 7.50% Medium-Term Notes due August 1, 2009, for $1,000 per $1,000 principal amount, plus accrued interest. For the 7.50% Medium-Term Notes due December 15, 2010, the offer price is $980 per $1,000 principal amount, plus accrued interest.

AvalonBay plans to use available cash and borrowings under its $1 billion unsecured revolving credit facility to finance the purchase of the notes and pay accrued interest.

The tender offer is set to expire at 11:59 p.m., New York City time, on Friday, January 16, 2009, unless extended or terminated earlier by the company.