AvalonBayCommunities Inc. settled a public offering of two medium-termnotes, which were priced Sept. 26.
Settlement took place Oct. 5, and the notes bear interestfrom that date.
The offering comprised 2.90% medium-term notes due Oct. 15,2026, and 3.90% medium-term notes due Oct. 15, 2046, with aggregate principalamounts of $300.0 million and $350.0 million, respectively. Interest on thenotes is payable semiannually every April 15 and Oct. 15, starting in 2017.
AvalonBay will use the roughly $641.8 million in aggregatenet proceeds to cut outstanding debt under its $1.50 billion unsecuredrevolving credit facility and for general corporate purposes, which may includeapartment community acquisitions, developments and redevelopments, and otherdebt repayment and refinancing. It will also apply a portion of the netproceeds toward the full redemption during the fourth quarter of its 5.70%notes due March 15, 2017, which had a $250 million outstanding amount as ofAug. 31.
Merrill Lynch Pierce Fenner & Smith Inc. and BarclaysCapital Inc. were the representatives of the agents named in the termsagreement for the notes.