AvalonBay Communities, Inc. Completes $350 Million Senior Notes Offering

AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”) announced today that it completed an underwritten public offering of $350 million aggregate principal amount of senior unsecured notes due 2033 (the “Notes”). Details of the offering are set forth in the table below:

		Principal Amount		Maturity Date		Issue Price		Coupon Rate		Yield to Investors
5.000% Notes due 2033		$350 Million		February 15, 2033		99.590%		5.000%		5.050%

The effective interest rate of the Notes is 4.373%, including the impact of offering costs and prior interest rate hedges.

Interest on the Notes will be paid semi-annually on February 15 and August 15, with the first payment to be made on August 15, 2023. The Notes will mature on February 15, 2033 unless earlier redeemed.

The Company expects to use the net proceeds, after deducting the underwriting discount and estimated offering expenses, of approximately $345.5 million from the sale of the Notes for identified and prospective land acquisitions, the development and redevelopment of apartment communities, the acquisition of communities, and working capital and general corporate purposes, which may include the repayment of outstanding indebtedness under its commercial paper program, which allows the Company to issue, from time to time, unsecured commercial paper notes with varying maturities of less than one year up to a maximum amount outstanding at any one time of $500 million, or its $2.25 billion revolving variable rate unsecured credit facility. General corporate purposes may also include the repayment and refinancing of other indebtedness. Pending the application of such net proceeds, 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.