AvalonBay Communities Prices $300 Million Unsecured Notes Offering

ARLINGTON, Va.--(BUSINESS WIRE)-- AvalonBay Communities, Inc. (NYSE: AVB) (the “Company”) announced today that it priced a $300 million offering of unsecured notes (the “Notes”) with a maturity of November 15, 2024 under its existing shelf registration statement. Details of the transaction are set forth in the table below:

Interest on the Notes will be paid semi-annually on May 15 and November 15, with the first payment to be made on May 15, 2015. Settlement is scheduled for November 21, 2014.

The Company expects to use the net proceeds, after estimated issuance costs, of approximately $295 million from the sale of the Notes for working capital, capital expenditures and other general corporate purposes, which may include development, redevelopment and acquisition of apartment communities and repayment and refinancing of existing debt. Pending the application of the net proceeds as described above, the Company may invest the net proceeds in short-term, interest-bearing, investment-grade securities.

The offering is being made pursuant to an automatic shelf registration statement that became effective upon filing with the Securities and Exchange Commission on February 27, 2012.

Morgan Stanley & Co. LLC and UBS Securities LLC are acting as lead representatives of the agents for the Notes offering. The pricing supplement, prospectus supplement and related prospectus will be filed with the Securities and Exchange Commission. The pricing supplement, prospectus supplement and accompanying base prospectus relating to the offering may be obtained by contacting: Morgan Stanley & Co. LLC, Attn: Morgan Stanley Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 and UBS Securities LLC, 299 Park Avenue, New York, NY 10171, Attn: Prospectus Specialist, telephone: (877) 827-6444, ext. 5613884.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offer or sale will be made only by means of the pricing supplement and the related prospectus supplement and prospectus, and, to the extent applicable, a free writing prospectus, which has been or will be filed with the Securities and Exchange Commission.

About AvalonBay Communities

As of September 30, 2014, the Company owned or held a direct or indirect ownership interest in 274 apartment communities containing 82,333 apartment homes in eleven states and the District of Columbia, of which 27 communities were under construction and six communities were under reconstruction. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in high barrier-to-entry markets of the United States.

Copyright © 2014 AvalonBay Communities, Inc. All Rights Reserved

AvalonBay Communities, Inc.
Kevin P. O’Shea
Chief Financial Officer
703-317-4654

Source: AvalonBay Communities, Inc.

Released November 12, 2014