AvalonBay buys back $300M in debt in tender offer

AvalonBay Communities accepts $300 million in outstanding notes for payment in tender offer

• On 12:10 pm EDT, Wednesday October 7, 2009

ALEXANDRIA, Va. (AP) -- Real estate investment trust AvalonBay Communities Inc. on Wednesday said it accepted $300 million of outstanding notes for payment in a tender offer that expired at midnight Monday.

The company will record a charge of approximately $24.7 million in the fourth quarter to reflect the tender premium paid in excess of the par value of the notes.

The notes accepted included $46 million in 7.5 percent notes due Dec. 5, 2010; $150 million in 6.65 percent notes due Sept. 15, 2011; $55.6 million in 5.5 percent notes due Jan. 15, 2012 and $48.4 million in 6.125 percent notes due Nov. 1, 2012.

Morgan Stanley & Co. and JPMorgan Securities Inc. acted as the lead dealer managers for the tender offer, and Bank of America Merrill Lynch and Wells Fargo Securities acted as the co-dealer managers.

AvalonBay shares added 59 cents to $71 in midday trading.