AvalonBay Communities, Inc. Prices $400 Million Senior Notes Offering

AVALONBAY COMMUNITIES, INC. (NYSE: AVB) (the “Company”) announced today that it priced an underwritten public offering of $400 million of 5.300% senior unsecured notes due 2033 (the “Notes”). The offering is expected to close on December 7, 2023, subject to the satisfaction of customary closing conditions.

Details of the offering are set forth in the table below:

	Principal Amount	Maturity Date	Issue Price	Coupon Rate	Yield to Investors
5.300% Senior Notes due 2033	$400 Million	December 7, 2033	99.939%	5.300%	5.308%

The effective interest rate of the Notes is 5.098%, including the impact of prior interest rate hedges, but excluding offering costs.

Interest on the Notes will be paid semi-annually on June 7 and December 7, with the first payment to be made on June 7, 2024. The Notes will mature on December 7, 2033, unless earlier redeemed.

The Company expects to use the net proceeds, after deducting the underwriting discount and estimated offering expenses, of approximately $396.2 million from the sale of the Notes for identified and prospective land acquisitions, the development and redevelopment of apartment communities, the acquisition of communities, funding of its structured investment program investments, 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.