Summary
AvalonBay Communities, Inc. (AVB) announced on May 6, 2015, the pricing of a public offering of $525 million in aggregate principal amount of 3.45% Medium Term Notes due 2025. The offering was conducted under the company's existing shelf registration statement. The net proceeds from this offering are approximately $520.2 million, which the company intends to use for reducing outstanding indebtedness under its $1.3 billion unsecured revolving credit facility and for general corporate purposes. These purposes may include the development, redevelopment, and acquisition of apartment communities, as well as the repayment and refinancing of other debt. The settlement for this note issuance occurred on May 13, 2015.
Key Highlights
- 1AVB priced a $525 million public offering of 3.45% Medium Term Notes due 2025.
- 2The offering was made under the company's existing shelf registration statement.
- 3Net proceeds from the offering are approximately $520.2 million.
- 4Proceeds will be used to reduce outstanding debt under the company's revolving credit facility.
- 5Remaining proceeds are allocated for general corporate purposes, including development, redevelopment, and acquisitions.
- 6Settlement of the note offering occurred on May 13, 2015.
Frequently Asked Questions
The primary purpose of the offering is to raise approximately $520.2 million in net proceeds to reduce outstanding indebtedness under AvalonBay's $1.3 billion unsecured revolving credit facility and for general corporate purposes.
The notes have a coupon rate of 3.45% and mature on June 1, 2025. Interest payments are scheduled semi-annually on June 1 and December 1, with the first payment on December 1, 2015.
Beyond reducing revolving credit facility debt, the net proceeds may be used for general corporate purposes, which include the development, redevelopment, and acquisition of apartment communities, as well as the repayment and refinancing of other existing indebtedness.
The offering was priced on May 6, 2015, and settlement occurred on May 13, 2015.