AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”)
announced today that it priced an underwritten public offering of
$400 million of 5.350% senior unsecured notes due 2034 (the
“Notes”). The offering is expected to close on May 14, 2024,
subject to the satisfaction of customary closing conditions.
Details of the offering are set forth in the table below:
Principal
Amount
Maturity
Date
Issue
Price
Coupon
Rate
Yield to
Investors
5.350% Senior Notes due 2034
$400 Million
June 1, 2034 99.697%
5.350%
5.389%
The effective interest rate of the Notes is 4.961%, including
the impact of prior interest rate hedges, but excluding offering
costs.
Interest on the Notes will be paid semi-annually on June 1 and
December 1, with the first payment to be made on December 1, 2024.
The Notes will mature on June 1, 2034, unless earlier redeemed.
The Company expects to use the net proceeds, after deducting the
underwriting discount and estimated offering expenses, of
approximately $395.2 million from the sale of the Notes for
identified and prospective land acquisitions, the development and
redevelopment of apartment communities, the acquisition of
communities, funding of its structured investment program
investments, and working capital and general corporate purposes,
which may include the repayment of outstanding indebtedness under
its commercial paper program, which allows the Company to issue,
from time to time, unsecured commercial paper notes with varying
maturities of less than one year up to a maximum amount outstanding
at any one time of $500 million, or its $2.25 billion revolving
variable rate unsecured credit facility. General corporate purposes
may also include the repayment and refinancing of other
indebtedness. Pending the application of such net proceeds, the
Company may temporarily invest all or a portion of the net proceeds
from the offering in cash or cash equivalents and/or hold such
proceeds in accordance with its internal liquidity policy.
BofA Securities, PNC Capital Markets LLC, RBC Capital Markets,
TD Securities, Goldman Sachs & Co. LLC, J.P. Morgan, Morgan
Stanley, Scotiabank, Truist Securities and Wells Fargo Securities
are acting as joint book-running managers of the offering.
Barclays, BNP Paribas, Deutsche Bank Securities, Mizuho, US
Bancorp, and Ramirez & Co., Inc. are acting as co-managers of
the offering.
The offering is being made pursuant to an automatic shelf
registration statement that became effective upon filing with the
Securities and Exchange Commission on February 23, 2024. The
prospectus supplement and accompanying base prospectus relating to
the offering will be filed with the Securities and Exchange
Commission (the “SEC”). When available, a copy of the prospectus
supplement and accompanying base prospectus relating to the
offering may be obtained by contacting: BofA Securities, Inc.,
NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina
28255-0001, Attention: Prospectus Department, telephone:
1-800-294-1322 or by email at dg.prospectus_requests@bofa.com; PNC
Capital Markets LLC, 300 Fifth Avenue, Pittsburgh, Pennsylvania
15222, telephone: 1-855-881-0697 or by email at
pnccmprospectus@pnc.com; RBC Capital Markets, LLC, Brookfield
Place, 200 Vesey Street, 8th Floor, New York, New York 10281,
Attention: Syndicate Operations, telephone: 1-866-375-6829 or by
email at: rbcnyfixedincomeprospectus@rbccm.com; TD Securities (USA)
LLC, 1 Vanderbilt Avenue, 11th Floor, New York, New York 10017,
Attention: DCM-Transaction Advisory, telephone: 1-855-495-9846; or
by visiting the EDGAR database on the SEC’s web site at
www.sec.gov.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor will there be any sale of these
securities in any state or other jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the federal securities laws, including Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which include, but are
not limited to, statements related to the offering of the Notes and
the expected use of the net proceeds from the offering. The Company
intends these forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995 and is including
this statement for purposes of complying with those safe harbor
provisions, in each case, to the extent applicable. The Company
cautions investors that any such forward-looking statements are
based on current beliefs or expectations of future events and on
assumptions made by, and information currently available to,
management. You can identify forward-looking statements by the use
of the words “believe,” “expect,” “anticipate,” “intend,”
“estimate,” “assume,” “project,” “plan,” “may,” “shall,” “will,”
“pursue” and other similar expressions in this press release, that
predict or indicate future events and trends and that do not report
historical matters. Such forward-looking statements are subject to
various risks and uncertainties, including, among others, the
availability of debt and equity financing and the trends affecting
the Company’s financial condition or results of operations. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are described
under the sections entitled “Forward-Looking Statements” and “Risk
Factors” in the Company's Annual Report on Form 10-K for the year
ended December 31, 2023, as such factors may be updated from time
to time in the Company’s periodic filings with the SEC, which are
accessible on the SEC’s website at www.sec.gov. Accordingly, there
are or will be important factors that could cause actual outcomes
or results to differ materially from those indicated in these
statements. The forward-looking statements speak only as of the
date of this press release, and the Company expressly disclaims any
obligation or undertaking to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except to the extent otherwise
required by law.
About AvalonBay Communities, Inc.
As of March 31, 2024, the Company owned or held a direct or
indirect ownership interest in 299 operating apartment communities
containing 90,673 apartment homes in 12 states and the District of
Columbia, of which 17 communities were under development. The
Company is an equity REIT in the business of developing,
redeveloping, acquiring and managing apartment communities in
leading metropolitan areas in New England, the New York/New Jersey
Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern
and Southern California, as well as in the Company's expansion
regions of Raleigh-Durham and Charlotte, North Carolina, Southeast
Florida, Dallas and Austin, Texas, and Denver, Colorado.
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version on businesswire.com: https://www.businesswire.com/news/home/20240507999121/en/
Jason Reilley Vice President Investor Relations AvalonBay
Communities, Inc. 703-317-4681
Avalonbay Communities (NYSE:AVB)
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