By Cristal Cody
Tupelo, Miss., Nov. 9 – AvalonBay Communities, Inc. sold $750 million of medium-term notes (A3/A-) in two tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $300 million of floating-rate notes due Jan. 15, 2021 at par to yield Libor plus 43 basis points.
AvalonBay sold $450 million of 3.2% notes due Jan. 15, 2028 at 99.599 and a spread of Treasuries plus 92 bps.
Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to reduce debt under AvalonBay’s $1.5 billion unsecured revolving credit facility, to prepay some or all of the debt under its $300 million variable rate unsecured term loan that was originated in 2014 and for general corporate purposes, including 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.
| Issuer: | AvalonBay Communities, Inc.
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| Amount: | $750 million
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| Description: | Medium-term notes
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| Bookrunners: | Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
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| Trade date: | Nov. 8
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| Settlement date: | Nov. 15
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Distribution: | SEC registered
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| Three-year notes
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| Amount: | $300 million
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| Maturity: | Jan. 15, 2021
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| Coupon: | Libor plus 43 bps
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| Price: | Par
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| Yield: | Libor plus 43 bps
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| Call features: | On and after Nov. 16, 2018 at par
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| 10-year notes
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| Amount: | $450 million
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| Maturity: | Jan. 15, 2028
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| Coupon: | 3.2%
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| Price: | 99.599
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| Spread: | Treasuries plus 92 bps
|
| Call features: | Make-whole at Treasuries plus 15 bps until 90 days before maturity, then at par
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