AvalonBay tenders for up to $300 million of four series of notes

By Susanna Moon

Chicago, Sept. 8 - AvalonBay Communities, Inc. said it began a cash tender offer for up to $300 million principal amount of its outstanding 7.5% medium-term notes due Dec. 15, 2010, 6.625% MTNs due Sept. 15, 2011, 5.5% MTNs due Jan. 15, 2012 and 6.125% MTNs due Nov. 1, 2012.

For each $1,000 principal amount, AvalonBay will pay $1,075 for its $135,577,000 of 7.5% notes, $1,090 for its $350 million of 6.625% notes, $1,062.50 for its $235 million of 5.5% notes and $1,087.50 for its $250 million of 6.125% notes.

AvalonBay will accept all 7.5% notes. The company will then accept 6.625% notes and finally its 5.5% notes and 6.125% notes.

The total price includes a $30.00 premium for notes tendered by 5 p.m. ET on Sept. 21, the early tender date.

The tender offer is scheduled to expire at midnight ET on Oct. 5.

AvalonBay also said it will pay accrued interest to the payment date, which is expected to be Oct. 6.

Morgan Stanley & Co. Inc. (800 624-1808 or collect 212 761-5384) and J.P. Morgan Securities Inc. (866 834-4666 or collect 212 834-4802) are the lead dealer managers. Bank of America Merrill Lynch and Wells Fargo Securities, LLC are the co-dealer managers. Global Bondholder Services Corp. (866 470-4200 or banks and brokers 212 430-3774) is the information agent and depositary.

The issuer is a real estate investment trust based in Alexandria, Va. It is in the business of developing, redeveloping, acquiring, and managing apartment communities in high barrier-to-entry markets of the United States.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.