8-K/AMaterial AgreementsFinancial EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K/A Report, Material Agreement (Jan 15, 2016)

Filed January 15, 2016For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) filed an 8-K/A amendment on January 15, 2016, primarily to correct the conformed signature of an executive officer on a previous filing from January 14, 2016. The core information remains the same: the company entered into a significant $1.5 billion Fourth Amended and Restated Revolving Loan Agreement (the "Credit Facility"), which replaces its prior $1.3 billion facility. This new, larger credit line provides increased financial flexibility and capacity for the company's operations and strategic initiatives. This enhanced credit facility demonstrates AVB's strong relationships with its banking partners and its ability to secure substantial funding. The facility includes an option to increase the total size to $2.0 billion under certain conditions, offering significant room for future growth. The terms include an initial maturity date of April 30, 2020, with a possible nine-month extension, and pricing that varies based on market rates (LIBOR) and AVB's credit rating, suggesting a focus on cost-efficient borrowing. The agreement also imposes customary financial covenants, ensuring the company maintains a healthy balance sheet.

Key Highlights

  • 1AVB entered into a $1.5 billion Fourth Amended and Restated Revolving Loan Agreement (Credit Facility) on January 14, 2016.
  • 2This new facility replaces a previous $1.3 billion credit facility.
  • 3The Credit Facility has an option to be increased by up to an additional $500 million, reaching a total of $2.0 billion.
  • 4The maturity date for the Credit Facility is April 30, 2020, with a potential nine-month extension.
  • 5Borrowing costs are based on LIBOR plus a spread that can range from 0.80% to 1.55%, depending on AVB's credit rating.
  • 6The agreement includes customary financial covenants, such as maintaining specific coverage ratios (e.g., debt to capitalization, EBITDA to debt service).
  • 7As of the agreement's commencement, no loans were outstanding, with approximately $44.8 million used for letters of credit, leaving about $1.46 billion available for borrowing.

Frequently Asked Questions

The primary purpose of this 8-K/A filing is to amend the original 8-K filing dated January 14, 2016, by including the conformed signature of an executive officer. There are no changes to the substantive information reported in the original filing.

AvalonBay Communities, Inc. entered into a $1.5 billion Fourth Amended and Restated Revolving Loan Agreement (Credit Facility) on January 14, 2016. This agreement provides the company with significant borrowing capacity and replaces its prior credit facility.

The initial size of the Credit Facility is $1.5 billion, with the flexibility to increase it by up to an additional $500 million, bringing the potential aggregate size to $2.0 billion, subject to the commitment of additional lenders.

The Credit Facility matures on April 30, 2020. The company has the option to extend the term for an additional nine months, provided it is not in default and meets certain conditions, upon payment of a 10.0 basis point extension fee.