Item 8.01. Other Events.
On May 3, 2017, AvalonBay Communities, Inc. (the Company) priced a public offering (the Offering) of an aggregate of $400,000,000 principal amount of its 3.350% Medium Term Notes due May 15, 2027 (the Notes). The Offering was made pursuant to a Pricing Supplement dated May 3, 2017, a Prospectus Supplement dated May 6, 2015 and a Prospectus dated February 19, 2015 relating to the Companys Shelf Registration Statement on Form S-3 (File No. 333-202185). The Terms Agreement, dated May 3, 2017, by and among the Company and J.P. Morgan Securities LLC and Deutsche Bank Securities Inc., as representatives of the agents named therein, is filed herewith as Exhibit 1.1.
The Notes were issued under an Indenture between the Company and The Bank of New York Mellon, as trustee, dated as of January 16, 1998, as supplemented by a First Supplemental Indenture dated as of January 20, 1998, a Second Supplemental Indenture dated as of July 7, 1998, an Amended and Restated Third Supplemental Indenture dated as of July 10, 2000, a Fourth Supplemental Indenture dated as of September 18, 2006, and a Fifth Supplemental Indenture dated as of November 21, 2014.
The Notes bear interest from May 12, 2017, with interest on the Notes payable semi-annually on May 15 and November 15, beginning on November 15, 2017. The Notes will mature on May 15, 2027. The Company will use the aggregate net proceeds, after underwriting discounts and other transaction-related costs, of approximately $395,241,000 from the sale of the Notes to reduce indebtedness outstanding under its $1,500,000,000 unsecured revolving credit facility, a portion of which had been used for the repayment of secured indebtedness, and for general corporate purposes, which may include the acquisition, development and redevelopment of apartment communities and repayment and refinancing of other indebtedness. Pending such uses, the Company may invest the net proceeds from the sale of the Notes in short-term demand deposits, short-term money market funds or investment grade securities or other similar investments. Borrowings under the Companys unsecured revolving credit facility were used to fund the acquisition, development and redevelopment of apartment communities, to repay outstanding indebtedness and for general corporate purposes. Settlement occurred on May 12, 2017.