By Cristal Cody
Tupelo, Miss., Feb. 10 – AvalonBay Communities, Inc. priced an upsized $700 million of 2.3% 10-year medium-term notes (A3/A-) on Monday at 99.893 and a spread of Treasuries plus 77 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk on the notes due March 1, 2030 was in the Treasuries plus 95 bps area.
The deal was upsized from $650 million.
Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to redeem the company’s $400 million of outstanding 3.625% notes due Oct. 1, 2020 and $250 million outstanding of 3.95% notes due Jan. 15, 2021.
The manager and developer of apartment communities is based in Arlington, Va.
| Issuer: | AvalonBay Communities, Inc.
|
| Amount: | $700 million
|
| Description: | Medium-term notes
|
| Maturity: | March 1, 2030
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 2.3%
|
| Price: | 99.893
|
| Spread: | Treasuries plus 77 bps
|
| Call features: | Make-whole call at principal sum and Treasuries plus 12.5 bps; on or after 90 days before maturity at par
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 95 bps area
|
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