Avalonbay to redeem all $250 million 5.7% notes via new note offering

By Tali Rackner

Norfolk, Va., Sept. 26 – Avalonbay Communities, Inc. plans to redeem all of its 5.7% notes due March 15, 2017 with a portion of the proceeds from a new fixed-rate medium-term note offering, according to a 424B2 filing with the Securities and Exchange Commission.

As of Aug. 31, there was $250 million of the notes outstanding. The redemption will take place in the fourth quarter.

In addition, the company said it intends to reduce debt outstanding under its $1.5 billion unsecured revolving credit facility. As of Aug. 31, there were no borrowings outstanding under the facility, as well as an additional $52,080,100 used to provide letters of credit, resulting in $1,447,919,900 available for borrowing under the facility.

Proceeds will also be used for general corporate purposes, which may include 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.

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