AvalonBay Communities Announces Completion of Its First Green Bond Offering and Redemption of Outstanding 2022 Unsecured Notes

AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”) announced today that on September 15, 2021 it completed an underwritten public offering of $700 million aggregate principal amount of 2.050% senior notes due 2032 (the “2032 Notes”). Details of the offering are set forth in the table below:

Principal Amount

 

Maturity Date

 

Issue Price

 

Coupon Rate

 

Yield to Investors

 

 

 

 

 

 

 

 

 

2.050% Notes due 2032

$700 million

 

January 15, 2032

 

99.881%

 

2.050%

 

2.063%

The effective interest rate of the 2032 Notes is 2.153%, including the impact of a prior interest rate hedge and offering costs.

Interest on the 2032 Notes will be paid semi-annually on January 15 and July 15, with the first payment to be made on January 15, 2022. The 2032 Notes will mature on January 15, 2032 unless earlier redeemed.

The Company expects to allocate the net proceeds, after deducting the underwriting discount and estimated offering expenses, of approximately $693.3 million from the sale of the 2032 Notes to finance or refinance, in whole or in part, one or more new or existing eligible green projects. Pending such allocation, the Company may use the net proceeds from the offering for general corporate purposes, which may include the acquisition, development and redevelopment of apartment communities and repayment and refinancing of other indebtedness, including the repayment of outstanding indebtedness under its $1,750,000,000 revolving variable rate unsecured credit facility. Pending such uses, the Company may temporarily invest all or a portion of the net proceeds from the offering in cash or cash equivalents and/or hold such proceeds in accordance with its internal liquidity policy.