By Andrea Heisinger
New York, Sept. 8 - AvalonBay Communities, Inc. sold $500 million of medium-term notes (Baa1/BBB+/) in two tranches Tuesday, a market source said.
The $250 million of 5.7% notes due March 15, 2017 priced at 99.896 to yield 5.717%, or Treasuries plus 270 basis points.
A $250 million tranche of 6.1% notes due March 15, 2020 priced at 99.853 to yield 6.119% and also had a spread of Treasuries plus 270 bps.
Both tranches have a make-whole call at Treasuries plus 45 bps.
Bookrunners were Morgan Stanley & Co. Inc. and J.P. Morgan Securities Inc.
Proceeds will be used to reduce debt under a $1 billion unsecured variable-rate revolver and to finance the repurchase of certain long-term debt in a tender offer. The balance will be used for general corporate purposes.
The developer and manager of apartment communities is based in Alexandria, Va.
| Issuer: | AvalonBay Communities, Inc.
|
| Issue: | Medium-term notes
|
| Total amount: | $500 million
|
| Bookrunners: | Morgan Stanley & Co. Inc., J.P. Morgan Securities Inc.
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Notes due 2017
|
| Amount: | $250 million
|
| Maturity: | March 15, 2017
|
| Coupon: | 5.7%
|
| Price: | 99.896
|
| Yield: | 5.717%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
|
|
| Notes due 2020
|
| Amount: | $250 million
|
| Maturity: | March 15, 2020
|
| Coupon: | 6.1%
|
| Price: | 99.853
|
| Yield: | 6.119%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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