8-KOther EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K Report, Corporate Update (Nov 21, 2014)

Filed November 21, 2014For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) announced the pricing of a public offering of $300 million in 3.50% Medium Term Notes due 2024. This offering, which settled on November 21, 2014, provides the company with substantial liquidity to support its ongoing growth and operational strategies. Investors should note that the net proceeds, estimated at approximately $295.35 million after fees, are earmarked for general corporate purposes. This includes potential investments in property development, redevelopment, and acquisitions, as well as the refinancing of existing debt. The issuance of these notes extends AVB's debt maturity profile and provides flexibility in managing its capital structure.

Key Highlights

  • 1Priced $300 million in 3.50% Medium Term Notes due November 15, 2024.
  • 2Net proceeds of approximately $295.35 million to be used for general corporate purposes.
  • 3Funds may be allocated to development, redevelopment, and acquisition of apartment communities.
  • 4Proceeds can also be used for repayment and refinancing of existing debt.
  • 5Notes bear interest from November 21, 2014, with semi-annual payments starting May 15, 2015.
  • 6Settlement of the offering occurred on November 21, 2014.
  • 7The offering was made under the company's shelf registration statement.

Frequently Asked Questions

The primary purpose of this $300 million debt offering is to provide AvalonBay Communities, Inc. with additional capital for general corporate purposes. This includes funding potential development, redevelopment, and acquisitions of apartment communities, as well as refinancing existing debt.

The notes are 3.50% Medium Term Notes due November 15, 2024. They will bear interest from November 21, 2014, with interest payments made semi-annually on May 15 and November 15, commencing May 15, 2015.

AvalonBay raised $300 million in aggregate principal amount of notes. After accounting for underwriting discounts and other transaction costs, the company expects to receive net proceeds of approximately $295,353,000.

The settlement for the offering occurred on November 21, 2014, meaning the net proceeds were made available to the company on or around that date.