WASHINGTON (dpa-AFX) - AvalonBay Communities (AVB) said that it has priced an underwritten public offering of 2 million shares of common stock for expected gross proceeds of about $497.2 million.
Morgan Stanley and J.P. Morgan are acting as joint book-running managers for the offering.
The company noted that it has entered into forward sale agreements with Morgan Stanley & Co. LLC and JPMorgan Chase Bank, N.A. or their affiliates with respect to 2 million shares of its common stock.
In connection with the forward sale agreements, the forward purchasers or their affiliates are expected to borrow and sell to the underwriters an aggregate of 2 million shares of the common stock that will be delivered in the offering.
The company plans 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, 2023, an aggregate of 2 million shares of its common stock to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price, subject to certain adjustments as provided in the forward sale agreements.
The offering is expected to close on April 11, 2022.
The company 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, and working capital and general corporate purposes.
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