8-KOther EventsExhibits & Filings

AVALONBAY COMMUNITIES INC 8-K Report, Corporate Update (Sep 15, 2021)

Filed September 15, 2021For Securities:AVB

Summary

AvalonBay Communities, Inc. (AVB) announced the closing of a public offering of $700 million in aggregate principal amount of 2.050% Senior Notes due 2032. This offering, completed on September 15, 2021, was made under the company's existing shelf registration statement and underwritten by a syndicate led by J.P. Morgan Securities LLC, Barclays Capital Inc., Goldman Sachs & Co. LLC, and Morgan Stanley & Co. LLC. The net proceeds from this issuance are approximately $693.3 million, after deducting underwriting discounts and offering expenses. The company intends to use these proceeds to finance or refinance eligible green projects in accordance with ICMA Green Bond Principles. Pending full allocation to green projects, the net proceeds may be used for general corporate purposes, including property acquisitions, development, redevelopment, and the repayment of existing indebtedness. Notably, the company recently redeemed $450 million of its 2.95% Medium-Term Notes due 2022 using existing cash and its revolving credit facility.

Key Highlights

  • 1AVB successfully closed a $700 million public offering of 2.050% Senior Notes due 2032.
  • 2The net proceeds from the offering are approximately $693.3 million.
  • 3Proceeds are earmarked for eligible green projects, aligning with ICMA Green Bond Principles.
  • 4Pending green project allocation, funds may be used for general corporate purposes, including acquisitions, development, and debt repayment.
  • 5The company recently redeemed $450 million of its 2.95% Medium-Term Notes due 2022.
  • 6The new notes are senior unsecured obligations, ranking equally with other unsecured and unsubordinated debt.

Frequently Asked Questions

The company intends to use the net proceeds from this offering to finance or refinance eligible green projects. Pending full allocation to these projects, the proceeds may be used for general corporate purposes, such as acquiring, developing, or redeveloping apartment communities, and repaying other outstanding indebtedness.

The new notes bear an interest rate of 2.050% and mature on January 15, 2032. Interest payments are made semi-annually on January 15 and July 15, beginning January 15, 2022.

The notes are senior unsecured obligations of AvalonBay Communities, Inc., meaning they rank equally with all other unsecured and unsubordinated indebtedness of the company. They will be effectively subordinated to any secured indebtedness to the extent of the value of the collateral securing that debt.

Yes, the company recently funded the redemption of all its outstanding $450 million aggregate principal amount of 2.95% Medium-Term Notes due 2022 on September 11, 2021. This redemption was financed using available cash balances and borrowings under its revolving credit facility.