Exhibit 10.1

 

 

AMENDMENT NO. 1 TO THIRD AMENDED
AND RESTATED REVOLVING LOAN AGREEMENT

 

This AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED REVOLVING LOAN AGREEMENT,
dated as of December 20, 2012 (this “Amendment No. 1”), is by and among
AvalonBay Communities, Inc., a corporation organized under the laws of the State
of Maryland (the “Borrower”), the several lenders signatory hereto, including
Goldman Sachs Bank USA, as a new Bank under the Loan Agreement (collectively,
the “Banks”), and Bank of America, N.A., as administrative agent for the Banks
(in such capacity, the “Administrative Agent”).  Reference is made to that
certain Third Amended and Restated Revolving Loan Agreement, dated as of
September 29, 2011 (the “Loan Agreement”), by and among the Borrower, the Banks
party thereto and the Administrative Agent.  Capitalized terms used herein
without definition shall have the same meanings as set forth in the Loan
Agreement, as amended hereby.

 

RECITALS

 

WHEREAS, the Borrower has requested that the Banks extend the Maturity Date,
increase the Total Loan Commitment and make other amendments to the Loan
Agreement, and the Banks are willing to make such changes as set forth herein;

 

NOW, THEREFORE, in consideration of the premises and the agreements, provisions
and covenants herein contained, the parties hereto agree as follows:

 

SECTION 1.  AMENDMENTS TO LOAN AGREEMENT.  As of the Amendment Effective Date
(as defined in Section 3 hereof), the Loan Agreement is hereby amended as
follows:

 

(a)        The definition of “Accordion Amount” set forth in Section 1.01 of the
Loan Agreement is restated in its entirety to read as follows:

 

“‘Accordion Amount” means, at any time, $500,000,000.”

 

(b)        The definition of “Acquisition Asset” set forth in Section 1.01 of
the Loan Agreement is restated in its entirety to read as follows:

 

“‘Acquisition Asset” means any improved real property asset that has been owned
by the Borrower, its Consolidated Businesses or any UJV for fewer than eighteen
(18) months, unless the Borrower has made a one-time election (by written notice
to the Administrative Agent) to no longer treat such asset as an Acquisition
Asset for purposes of this Agreement.”

 

(c)        The definition of “Applicable Margin” set forth in Section 1.01 of
the Loan Agreement is restated in its entirety to read as follows:

 

“‘Applicable Margin” means, with respect to Base Rate Loans and LIBOR Loans (and
for purposes of determining the Banks’ L/C Fee Rate under Section 2.16(f)),

 

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the respective rates per annum determined at any time, based on the range into
which Borrower’s Credit Rating then falls, in accordance with the following
table (any change in Borrower’s Credit Rating causing it to move to a different
range on the table shall effect an immediate change in the Applicable Margin):

 

 

Range of Borrower’s Credit
Rating (S&P/Moody’s or other
agency equivalent)

Applicable Margin for
Base Rate Loans
(% per annum)

Applicable Margin
for LIBOR Loans
(% per annum)

 

Below BBB- or unrated/

Below Baa3 or unrated

0.725

1.725

 

BBB-/Baa3

0.40

1.40

 

BBB/Baa2

0.15

1.15

 

BBB+/Baa1

0.05

1.05

 

A-/A3 or higher

0.00

0.95

 

(d)       The definition of “Capitalization Value” set forth in Section 1.01 of
the Loan Agreement is amended by deleting the percentage “6.50%” each time it
appears in such definition and substituting the percentage “6.00%” in place
thereof.

 

(e)        The definition of “Facility Fee Rate” set forth in Section 1.01 of
the Loan Agreement is restated in its entirety to read as follows:

 

“‘Facility Fee Rate” means the rate per annum determined, at any time, based on
Borrower’s Credit Rating in accordance with the following table (any change in
Borrower’s Credit Rating causing it to move into a different range on the table
shall effect an immediate change in the Facility Fee Rate):

 

 

Borrower’s Credit Rating (S&P/Moody’s)

Facility Fee Rate
(% per annum)

 

Below BBB- or unrated/

Below Baa3 or unrated

0.375

 

BBB-/Baa3

0.30

 

BBB/Baa2

0.20

 

BBB+/Baa1

0.15

 

A-/A3 or higher

0.15

 

(f)        The definition of “Fee Letter” set forth in Section 1.01 of the Loan
Agreement is restated in its entirety to read as follows:

 

“‘Fee Letter” means, collectively, the letter agreements, dated as of July 14,
2011 and December 7, 2012, among the Borrower, JPMC and J.P. Morgan Securities
LLC.”

 

(g)        The definition of “Maturity Date” set forth in Section 1.01 of the
Loan Agreement is restated in its entirety to read as follows:

 

 

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“‘Maturity Date” means April 3, 2017, subject to extension in accordance with
Section 2.18.”

 

(h)        The definition of “Supplemental Fee Letter” set forth in Section 1.01
of the Loan Agreement is restated in its entirety to read as follows:

 

“‘Supplemental Fee Letter” means, collectively, the letter agreements, dated as
of July 14, 2011 and December 13, 2012, among Borrower, Bank of America and
Merrill Lynch, Pierce, Fenner & Smith Incorporated.”

 

(i)         The definition of “Total Loan Commitment” set forth in Section 1.01
of the Loan Agreement is restated in its entirety to read as follows:

 

“‘Total Loan Commitment” means an amount equal to the aggregate amount of all
Loan Commitments (i.e., $1,300,000,000 after giving effect to Amendment No. 1 to
this Agreement dated as of December 20, 2012), as the same may increase pursuant
to Section 2.19 or decrease pursuant to Section 2.10.”

 

(j)         The definition of “Unencumbered Asset Value” set forth in
Section 1.01 of the Loan Agreement is amended by deleting the percentage “6.50%”
each time it appears in such definition and substituting the percentage “6.00%”
in place thereof.

 

(k)        Section 2.16(b) of the Loan Agreement is amended by deleting the
amount “$200,000,000” on the second line thereof and substituting the amount
“$400,000,000” in place thereof.

 

(l)         Section 2.18 of the Loan Agreement is restated in its entirety to
read as follows:

 

“Section 2.18  Extension Of Maturity.  Borrower shall have two options (each, an
“Extension Option”) to extend the then applicable Maturity Date for a period of
six (6) months per extension (for a total extension of one (1) year).  Subject
to the conditions set forth below, Borrower may exercise an Extension Option by
delivering a written notice to Administrative Agent (who shall provide such
notice, promptly upon receipt, to each of the Banks) not more than ninety (90)
days and not less than thirty (30) days prior to the then applicable Maturity
Date (a “Notice to Extend”), stating that Borrower has elected to extend the
Maturity Date for six (6) months.  Borrower’s delivery of a Notice to Extend
shall be irrevocable and Borrower’s right to exercise each Extension Option
shall be subject to the following terms and conditions:  (i) there shall exist
no Event of Default on both the date Borrower delivers such Notice to Extend to
Administrative Agent and on the then applicable scheduled Maturity Date,
(ii) Borrower shall have paid to Administrative Agent for the account of each
Bank for each extension an extension fee equal to 0.075% of such Bank’s Loan
Commitment simultaneously with delivery of such Notice to Extend, (iii) Borrower
shall be in compliance with the covenants contained in Articles VII and VIII, as
evidenced by a certificate from Borrower of the sort required by paragraph
(3) of Section 6.09 (based on financial results for the most recent

 

 

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calendar quarter for which Borrower is required to report financial results) on
both the date Borrower delivers such Notice to Extend to Administrative Agent
and on the then applicable scheduled Maturity Date, and (iv) the Administrative
Agent shall receive a certificate of the Borrower, signed by a duly authorized
officer of the Borrower certifying, before and after giving effect to such
extension, the representations and warranties set forth in Article V of this
Agreement or the other Loan Documents are true and correct in all material
respects, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date.

 

(m)       Section 2.19(a) of the Loan Agreement is amended by (i) deleting the
amount “$750,000,000” on the third line thereof and substituting the amount
“$1,300,000,000” in place thereof and (ii) deleting the words “thirty-nine (39)
months after the Closing Date” on the tenth line thereof and substituting the
words “thirty-nine (39) months after the effective date of Amendment No. 1 to
this Agreement dated as of December 20, 2012” in place thereof.

 

(n)        Section 9.01(4) of the Loan Agreement is restated in its entirety to
read as follows:

 

“(4)      If Borrower or any Consolidated Business shall fail (a) to pay any
Recourse Debt (i) assumed by the Borrower or such Consolidated Business in
connection with the acquisition of the assets and liabilities of Archstone
Enterprise LP in an amount equal to or greater than $100,000,000 or (ii) of the
Borrower or such Consolidated Business (other than the payment obligations
described in paragraph (1) of this Section and assumed obligations referenced in
clause (i) of this paragraph) in an amount equal to or greater than $50,000,000,
in each case, when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) after the expiration of any applicable grace
period, or (b) to perform or observe any material term, covenant, or condition
under any agreement or instrument relating to any such Debt, when required to be
performed or observed, if the effect of such failure to perform or observe is to
accelerate, or to permit the acceleration of, after the giving of notice or the
lapse of time, or both (other than in cases where, in the judgment of the
Required Banks, meaningful discussions likely to result in (i) a waiver or cure
of the failure to perform or observe, or (ii) otherwise averting such
acceleration are in progress between Borrower and the obligee of such Debt), the
maturity of such Debt, or any such Debt shall be declared to be due and payable,
or required to be prepaid or repurchased (other than by a regularly scheduled or
otherwise required prepayment), prior to the stated maturity thereof; or”.

 

(o)        Section 12.05 of the Loan Agreement is amended by deleting the words
“, or notice to,” on the first line of the second paragraph thereof.

 

(p)        As of the Amendment Effective Date, the aggregate amount of the Loan
Commitments shall be $1,300,000,000.  Schedule 1 to the Loan Agreement is
deleted in its entirety and Schedule 1 to this Amendment No. 1 is substituted in
place thereof.  On the

 

 

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Amendment Effective Date, Pro Rata Shares shall be adjusted in accordance with
the Loan Commitments set forth on such new Schedule 1 and the outstanding Loans
shall be reallocated in accordance with such new Pro Rata Shares.

 

Goldman Sachs Bank USA hereby agrees to provide a new Loan Commitment in the
amount set forth on Schedule 1.  From and after the date hereof, Goldman Sachs
Bank USA agrees to become and shall be deemed to be a Bank for all purposes of
the Loan Agreement, and each reference to the Banks in the Loan Agreement shall
be deemed to include Goldman Sachs Bank USA.  Goldman Sachs Bank USA hereby
appoints Bank of America, N.A. as the Administrative Agent and authorizes the
Administrative Agent to take such action on its behalf and to exercise such
powers under the Loan Agreement and the other Loan Documents as are delegated to
the Administrative Agent by the terms thereof.

 

On the Amendment Effective Date, the Commitments of each of RBS Citizens,
National Association and Chang Hwa Commercial Bank, Ltd., New York Branch (each,
an “Exiting Bank”) shall be reduced to zero and each Exiting Bank shall cease to
be a Bank under the Loan Agreement.

 

Each of the other Banks party hereto confirms the amount of its Loan Commitment
as set forth in Schedule 1 attached to this Amendment No. 1.

 

SECTION 2.  REPRESENTATIONS AND WARRANTIES OF THE BORROWER

 

In order to induce the Banks and Administrative Agent to enter into this
Amendment No. 1, the Borrower represents and warrants to each Bank and
Administrative Agent that the following statements are true, correct and
complete:

 

(i)         The execution and delivery of this Amendment No. 1, the Loan
Agreement as amended by this Amendment No. 1 (the “Amended Loan Agreement”) and
any Notes executed in connection with this Amendment No. 1 (such Notes, together
with the Amended Loan Agreement, collectively, the “Amendment Documents”) and
the performance of the obligations required to be performed by the Borrower
hereunder and thereunder are within the Borrower’s corporate powers, have been
authorized by all necessary corporate action, and do not and will not
(a) require the consent or approval of its shareholders or such consent or
approval has been obtained, (b) contravene either its certificate of
incorporation or by-laws, (c) to the best of Borrower’s knowledge, violate any
provision of, or require any filing, registration, consent or approval under,
any Law (including, without limitation, Regulation U), order, writ, judgment,
injunction, decree, determination or award presently in effect having
applicability to it, (d) result in a breach of or constitute a default under or
require any consent under any indenture or loan or credit agreement or any other
agreement, lease or instrument to which it may be a party or by which it or its
properties may be bound or affected except for consents which have been
obtained, (e) result in, or require, the creation or imposition of any Lien,
upon or with respect to any of its properties now owned or hereafter acquired or
(f) to the best of Borrower’s knowledge, cause it to be in default under any
such Law, order, writ, judgment, injunction, decree, determination or award or
any such indenture, agreement, lease or instrument; to the best of its
knowledge, Borrower is in material compliance with all Laws applicable to it and
its properties;

 

 

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(ii)        each Amendment Document and this Amendment No. 1 has been duly
executed and delivered by the Borrower, is in full force and effect as of the
Amendment Effective Date and is a legal, valid and binding obligation of the
Borrower enforceable against the Borrower in accordance with its terms, except
to the extent that such enforcement may be limited by applicable bankruptcy,
insolvency and other similar Laws affecting creditors’ rights generally;

 

(iii)       each of the representations and warranties of the Borrower contained
in the Amended Loan Agreement, this Amendment No. 1, and the other Loan
Documents are true and correct in all material respects as of the date as of
which they were made and are true and correct in all material respects at and as
of the date of this Amendment No. 1 (except to the extent that such
representations and warranties relate expressly to an earlier date); and

 

(iv)       no Default or Event of Default exists on the date hereof (before and
after giving effect to this Amendment No. 1).

 

SECTION 3.  CONDITIONS TO EFFECTIVENESS

 

This Amendment No. 1 shall become effective only upon the satisfaction of the
following conditions precedent (the “Amendment Effective Date”):

 

A.  The Borrower, the Administrative Agent, and each of the Banks shall have
indicated their consent hereto by the execution and delivery of the signature
pages hereof to the Administrative Agent.

 

B.  A Ratable Loan Note for each of the Banks signatory hereto which has
requested such Note, a Swing Loan Note for the Administrative Agent, and a Bid
Rate Loan Note for the Administrative Agent shall have been duly executed and
delivered by the Borrower.

 

C.  The Administrative Agent shall have received a secretary’s certificate of
the Borrower (i) certifying as to its organizational documents, and attaching a
good standing certificate from the State of Maryland dated as of a recent date
and (ii) certifying as to resolutions and incumbency of officers with respect to
this Amendment No. 1 and the transactions contemplated hereby.

 

D.  The Administrative Agent shall have received all reasonable out-of-pocket
costs and expenses for which invoices have been presented (including the
reasonable fees and expenses of legal counsel for which the Borrower agrees it
is responsible pursuant to Section 12.04 of the Loan Agreement), incurred in
connection with this Amendment No. 1.

 

E.  Delivery to the Administrative Agent by Goodwin Procter LLP, as counsel to
the Borrower, of an opinion addressed to the Banks and the Administrative Agent
in form and substance reasonably satisfactory to the Administrative Agent.

 

F.  Payment by the Borrower of any mutually agreed upon compensation to the
Banks, to the Administrative Agent, and to J.P. Morgan Securities LLC and
Merrill Lynch, Pierce, Fenner & Smith, Incorporated, as joint lead arrangers, in
connection with this Amendment No. 1.

 

 

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G.  The conditions set forth in Section 4.02 of the Loan Agreement shall have
been satisfied as if a Loan were being made on the Amendment Effective Date and
the Administrative Agent shall have received a certificate dated the Amendment
Effective Date and executed by a duly authorized signatory of the Borrower that
such conditions have been satisfied.

 

H.  Upon satisfaction of the foregoing conditions, the Administrative Agent
shall deliver written notice to the Borrower and the Banks of the Amendment
Effective Date.

 

SECTION 4.  MISCELLANEOUS

 

A.  Reference to and Effect on the Loan Agreement and the Other Loan Documents.

 

(i)         On and after the effective date of this Amendment No. 1, each
reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein” or words of like import referring to the Loan Agreement and each
reference in the other Loan Documents to the “Loan Agreement”, “thereunder”,
“thereof” or words of like import referring to the Loan Agreement shall mean and
be a reference to the Amended Loan Agreement.  This Amendment No. 1 shall
constitute a Loan Document for all purposes under the Loan Agreement.

 

(ii)        Except as specifically amended by this Amendment No. 1, the Loan
Agreement and the other Loan Documents shall remain in full force and effect and
are hereby ratified and confirmed.

 

(iii)       The execution, delivery and performance of this Amendment No. 1
shall not, except as expressly provided herein, constitute a waiver of any
provision of, or operate as a waiver of any right, power or remedy of the
Administrative Agent or any Bank under, the Loan Agreement or any of the other
Loan Documents.

 

B.  Headings.  Section and subsection headings in this Amendment No. 1 are
included herein for convenience of reference only and shall not affect the
interpretation or construction of this Amendment No. 1.

 

C.  Applicable Law.  THIS AMENDMENT NO. 1 AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

 

D.  Counterparts; Effectiveness.  This Amendment No. 1 may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument, and any party hereto may execute this Amendment No. 1 by
signing any such counterpart.  Delivery of an executed counterpart of a
signature page of this Amendment No. 1 by telecopy or other electronic imaging
means shall be effective as delivery of a manually executed counterpart of this
Amendment No. 1.  This Amendment No. 1 (other than the provisions of Section 1
hereof, the effectiveness of which is governed by Section 3 hereof) shall become
effective upon the execution of a counterpart hereof by the Borrower and the
Banks and receipt by the Borrower and Administrative Agent of written
notification of such execution and authorization of delivery thereof.

 

 

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[Signature Pages to Follow]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

 

 

AVALONBAY COMMUNITIES, INC.

 

 

 

 

 

By:     /s/ Joan M. Lockridge

 

Name: Joanne M. Lockridge

 

Title: Senior Vice President

 

 

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BANK OF AMERICA, N.A. as Bank and as Administrative Agent

 

 

 

 

 

By:     /s/ Mark E. Dalton

 

Name: Mark E. Dalton

 

Title: Senior Vice President

 

 

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JPMORGAN CHASE BANK, N.A.

 

 

 

 

 

By:     /s/ Kimberly Turner

 

Name: Kimberly Turner

 

Title: Executive Director

 

 

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DEUTSCHE BANK TRUST COMPANY AMERICAS

 

 

 

 

 

 

By:

       /s/ James Rolison         

 

 

Name: James Rolison

 

 

Title: Managing Director

 

 

 

 

 

 

 

By:

       /s/ George R. Reynolds         

 

 

Name: George R. Reynolds

 

 

Title: Director

 

 

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MORGAN STANLEY BANK, N.A.

 

 

 

 

 

By:

       /s/ Kelly Chin               

 

 

Name: Kelly Chin

 

 

Title: Authorized Signatory

 

 

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WELLS FARGO BANK, N.A.

 

 

 

 

 

 

 

By:

      /s/ Sam Supple             

 

 

Name: Sam Supple

 

 

Title: Senior Vice President

 

 

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SUNTRUST BANK

 

 

 

 

 

 

 

By:

      /s/ Nancy B. Richards             

 

 

Name: Nancy B. Richards

 

 

Title: Senior Vice President

 

 

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UBS AG, STAMFORD BRANCH

 

 

 

 

 

 

 

By:

      /s/ Lana Grifas           

 

 

Name: Lana Grifas

 

 

Title: Director

 

 

 

 

By:

      /s/ Joselin Fernandes             

 

 

Name: Joselin Fernandes

 

 

Title: Associate Director

 

 

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THE BANK OF NEW YORK MELLON

 

 

 

 

 

 

 

By:

      /s/ Carol Murray                   

 

 

Name: Carol Murray

 

 

Title: Managing Director

 

 

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PNC BANK, NATIONAL ASSOCIATION

 

 

 

 

 

 

 

By:

      /s/ William R. Lynch, III        

 

 

Name: William R. Lynch, III

 

 

Title: Senior Vice President

 

 

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THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH

 

 

 

 

 

 

 

By:

      /s/ Charles Stewart     

 

 

Name: Charles Stewart

 

 

Title: Director

 

 

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BARCLAYS BANK PLC

 

 

 

 

 

 

 

By:

      /s/ Noam Azachi         

 

 

Name: Noam Azachi

 

 

Title: Authorized Signatory

 

 

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COMPASS BANK

 

 

 

 

 

 

 

By:

      /s/ Dan Killian             

 

 

Name: Dan Killian

 

 

Title: Senior Vice President

 

 

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BRANCH BANKING AND TRUST COMPANY

 

 

 

 

 

 

 

By:

      /s/ Glenn A. Page                  

 

 

Name: Glenn A. Page

 

 

Title: Senior Vice President

 

 

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CAPITAL ONE, N.A.

 

 

 

 

 

By:

      /s/ Frederick H. Denecke       

 

 

Name: Frederick H. Denecke

 

 

Title: Vice President

 

 

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GOLDMAN SACHS BANK USA

 

 

 

 

 

By:

      /s/ Mark Walton                    

 

 

Name: Mark Walton

 

 

Title: Authorized Signatory

 

 

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Schedule 1

 

Loan Commitments

 

Bank

Loan
Commitment

JPMorgan Chase Bank, N.A.

$120,000,000

Bank of America, N.A.

$120,000,000

Goldman Sachs Bank USA

$110,000,000

Barclays Bank PLC

$110,000,000

Deutsche Bank Trust Company Americas

$110,000,000

Morgan Stanley Bank

$110,000,000

UBS AG, Stamford Branch

$110,000,000

Wells Fargo Bank, N.A.

$110,000,000

The Bank of New York Mellon

$75,000,000

PNC Bank, National Association

$75,000,000

SunTrust Bank

$75,000,000

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

$50,000,000

Compass Bank

$50,000,000

Branch Banking and Trust Company

$50,000,000

Capital One, N.A.

$25,000,000

Total:

$1,300,000,000

 

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