By Cristal Cody
Tupelo, Miss., June 12 – AvalonBay Communities, Inc. priced $300 million of 4.15% 30-year medium-term notes (A3/A-) at 99.999 and a spread of 128 basis points over Treasuries on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were talked to price in the Treasuries plus 130 bps area, plus or minus 2 bps.
Goldman Sachs & Co. LLC and Wells Fargo Securities LLC were the lead managers.
Proceeds will be used to help prepay debt outstanding under the company’s Freddie Mac secured debt pool that matures on May 1, 2019. The 5.86% annual fixed-rate debt pool was originated in April 2009 and includes 12 collateral properties. The aggregate principal of secured debt outstanding with the debt pool is $556.31 million as of June 1.
The manager and developer of apartment communities is based in Arlington, Va.
| Issuer: | AvalonBay Communities, Inc.
|
| Amount: | $300 million
|
| Description: | Medium-term notes
|
| Maturity: | July 1, 2047
|
| Bookrunners: | Goldman Sachs & Co. LLC and Wells Fargo Securities LLC
|
| Coupon: | 4.15%
|
| Price: | 99.999
|
| Spread: | Treasuries plus 128 bps
|
| Call features: | At price equal to sum of principal of notes plus make-whole amount; on or after 180 days before maturity at par
|
| Trade date: | June 12
|
| Settlement date: | June 21
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 130 bps area, plus or minus 2 bps
|
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