Item 8.01
Other Events.
On May 15, 2019, AvalonBay Communities, Inc. (the “Company”) closed the public offering (the “Offering”) of an aggregate of $450,000,000 principal amount of its 3.300% Medium-Term Notes due 2029 (the “Notes”).
The Offering was made pursuant to a Pricing Supplement dated May 8, 2019, a Prospectus Supplement dated February 23, 2018 and a Prospectus dated February 23, 2018 relating to the Company’s Shelf Registration Statement on Form S-3 (File No. 333-223183). The Terms Agreement, dated May 8, 2019, by and among the Company and Barclays Capital Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, as representatives of the agents named therein, is filed as Exhibit 1.1 to this report.
The Notes were issued under an Indenture between the Company and The Bank of New York Mellon, as trustee (the “Trustee”), dated as of February 23, 2018, a First Supplemental Indenture between the Company and the Trustee, dated as of March 26, 2018, and a Second Supplemental Indenture between the Company and the Trustee, dated as of May 29, 2018.
The Notes bear interest from May 15, 2019, with interest on the Notes payable semi-annually on June 1 and December 1, beginning on December 1, 2019. The Notes will mature on June 1, 2029.
The Company will use the net proceeds, after estimated issuance costs, of approximately $446,051,000 from the sale of the Notes to reduce indebtedness outstanding under its $1,750,000,000 unsecured revolving credit facility 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 unsecured revolving credit facility were used to fund the acquisition, development and redevelopment of apartment communities, to repay outstanding indebtedness and for general working capital purposes.