AvalonBay Communities Prices Offering Of 3.20 Mln Shares For Expected Proceeds Of About $710.4 Mln

(RTTNews) - AvalonBay Communities (AVB) said that it has priced an underwritten public offering of 3.20 million shares of common stock, all of which are being offered in connection with the forward sale agreements, for expected gross proceeds of approximately $710.4 million.

Goldman Sachs & Co. LLC, BofA Securities, Deutsche Bank Securities Inc. and Morgan Stanley are acting as joint book-running managers for the offering.

The company has entered into forward sale agreements with Goldman Sachs & Co. LLC, Bank of America, N.A., Deutsche Bank AG, London Branch and Morgan Stanley & Co. LLC or their affiliates with respect to 3.20 million shares of its common stock.

The forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 3.20 million shares of the common stock that will be delivered in the offering.

The company intends to deliver, upon physical settlement of such forward sale agreements on one or more dates specified by the Company occurring no later than December 31, 2025, an aggregate of 3.20 million shares of its common stock to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price.

The company noted that it has granted the underwriters a 30-day option to purchase up to an additional 480,000 shares of common stock. If the underwriters exercise such option, the company expects to enter into additional forward sale agreements with the forward purchasers in respect of the number of shares sold by the forward purchasers in connection with the exercise of such option.

The offering is expected to close on September 9, 2024.

The company noted that it will not initially receive any proceeds from the sale of shares of its common stock by the forward purchasers or their affiliates in the offering.

The company intends to use the net proceeds, if any, it receives upon the future settlement of the forward sale agreements 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.