By Cristal Cody
Eureka Springs, Ark., Sept. 26 – AvalonBay Communities, Inc. sold $650 million of medium-term notes (Baa1/A-) in two parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $300 million of 2.9% 10-year notes at 99.689 to yield 135 basis points over Treasuries.
The $350 million tranche of 3.9% 30-year notes priced at 99.595 to yield Treasuries plus 160 bps.
The notes priced on the tight side of guidance.
Barclays and BofA Merrill Lynch were the bookrunners.
Proceeds will be used to reduce debt under AvalonBay’s $1.5 billion unsecured revolving credit facility and for general corporate purposes.
The manager and developer of apartment communities is based in Arlington, Va.
| Issuer: | AvalonBay Communities, Inc.
|
| Amount: | $650 million
|
| Description: | Medium-term notes
|
| Bookrunners: | Barclays, BofA Merrill Lynch
|
| Trade date: | Sept. 26
|
| Settlement date: | Oct. 5
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Oct. 15, 2026
|
| Coupon: | 2.9%
|
| Price: | 99.689
|
| Spread: | Treasuries plus 135 bps
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 5 bps
|
| Call feature: | Redeemable at price equal to par and make-whole amount; on or after 90 days before maturity at par
|
|
|
| 30-year notes
|
| Amount: | $350 million
|
| Maturity: | Oct. 15, 2046
|
| Coupon: | 3.9%
|
| Price: | 99.595
|
| Spread: | Treasuries plus 160 bps
|
| Price guidance: | Treasuries plus 165 bps area, plus or minus 5 bps
|
| Call feature: | Redeemable at price equal to par and make-whole amount; on or after 180 days before maturity at par
|
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