8-KOther EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K Report, Corporate Update (Nov 15, 2017)

Filed November 15, 2017For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) announced on November 8, 2017, the pricing of a significant debt offering, raising a total of $750 million. This offering consisted of $450 million in 3.20% Medium-Term Notes due 2028 and $300 million in Floating Rate Notes due 2021. The proceeds from this offering are primarily earmarked for reducing existing indebtedness under the company's unsecured revolving credit facility and/or its variable rate unsecured term loan. A portion of the proceeds may also be allocated towards general corporate purposes, including acquisitions, development, and redevelopment of apartment communities, as well as refinancing other debt.

Key Highlights

  • 1AVB priced a public offering of $750 million in aggregate principal amount of debt securities.
  • 2The offering includes $450 million of 3.20% Medium-Term Notes due 2028.
  • 3The offering also includes $300 million of Floating Rate Notes due 2021.
  • 4Proceeds will be used to reduce outstanding indebtedness under its unsecured revolving credit facility and/or term loan.
  • 5Funds may also be used for general corporate purposes, including acquisition and development of apartment communities.
  • 6The 2028 Notes bear a fixed interest rate of 3.20% and mature in January 2028.
  • 7The Floating Rate Notes bear interest at three-month USD LIBOR plus 43 basis points and mature in January 2021.

Frequently Asked Questions

AvalonBay Communities raised an aggregate of $750 million from the public offering of its debt securities.

The net proceeds will be used to reduce existing indebtedness under its unsecured revolving credit facility and/or its variable rate unsecured term loan. Additionally, funds may be used for general corporate purposes, which include the acquisition, development, and redevelopment of apartment communities, and refinancing other indebtedness.

The offering consists of $450 million of 3.20% Medium-Term Notes due 2028, paying semi-annual interest. It also includes $300 million of Floating Rate Notes due 2021, which bear interest at a rate of three-month USD LIBOR plus 43 basis points, payable quarterly.

The 3.20% Medium-Term Notes due 2028 mature on January 15, 2028. The Floating Rate Notes due 2021 mature on January 15, 2021.