By Aleesia Forni
Virginia Beach, May 6 – AvalonBay Communities, Inc. priced an upsized $525 million offering of 3.45% 10-year medium-term notes on Wednesday at Treasuries plus 123 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa1/A-/) sold at 99.822 to yield 3.471%.
Pricing was at the tight end of guidance.
Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners.
Proceeds will be use to reduce debt under a $1.3 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: | $525 million, upsized from $400 million
|
| Description: | Medium-term notes
|
| Maturity: | June 1, 2025
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Coupon: | 3.45%
|
| Price: | 99.822
|
| Yield: | 3.471%
|
| Spread: | 123 bps over Treasuries
|
| Trade date: | May 6
|
| Settlement date: | May 13
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
| Price guidance: | 125 bps area over Treasuries, tightened from 140 bps area
|
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