Summary
AvalonBay Communities, Inc. (AVB) announced on September 8, 2009, the pricing of a significant debt offering totaling $500 million. This offering consisted of $250 million in 5.70% Medium Term Notes due 2017 and $250 million in 6.10% Medium Term Notes due 2020. The net proceeds, estimated at approximately $495 million after fees and discounts, are earmarked for strategic financial actions. These proceeds will be utilized to reduce outstanding debt under the company's unsecured credit facility, to fund the repurchase of certain existing long-term debt securities (as announced in a separate tender offer on the same date), and for general corporate purposes including working capital and capital expenditures. The settlement for this debt offering occurred on September 11, 2009, indicating a timely execution of the company's financing strategy.
Key Highlights
- 1AvalonBay Communities, Inc. priced a $500 million aggregate principal amount debt offering.
- 2The offering comprises two tranches: $250 million of 5.70% Medium Term Notes due 2017 and $250 million of 6.10% Medium Term Notes due 2020.
- 3The net proceeds from the offering are approximately $495 million.
- 4Proceeds will be used to reduce existing credit facility indebtedness.
- 5Funds will also be used to finance the repurchase of certain outstanding long-term debt securities.
- 6Remaining proceeds are allocated for working capital, capital expenditures, and general corporate purposes.
- 7The debt offering settlement date was September 11, 2009.