Avalonbay Communities to reduce revolver debt via new note offering

By Tali Rackner

Norfolk, Va., Sept. 26 – Avalonbay Communities, Inc. plans to reduce debt outstanding under its $1.5 billion unsecured revolving credit facility with the proceeds from a new fixed-rate medium-term note offering, according to a 424B2 filing with the Securities and Exchange Commission.

As of Aug. 31, there were no borrowings outstanding under the facility, as well as an additional $52,080,100 used to provide letters of credit, resulting in $1,447,919,900 available for borrowing under the facility.

The company also expects to use a portion of the net proceeds to redeem during the fourth quarter all of its 5.7% notes due March 15, 2017, of which $250 million was outstanding as of Aug. 31.

Proceeds will also be used for general corporate purposes, which may include the acquisition, development and redevelopment of apartment communities and repayment and refinancing of other debt.

The manager and developer of apartment communities is based in Arlington, Va.

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