By Jennifer Chiou
New York, Oct. 2 - Forest City Enterprises, Inc. announced that it entered into separate, privately negotiated exchange agreements with certain holders of its $272.5 million of 3 5/8% putable equity-linked senior notes due October 2011.
In exchange for $167.4 million, or about 61.4%, of the existing notes, the company issued the same amount of new 3 5/8% putable equity-linked senior notes due October 2014.
In a separate transaction, Forest City sold $32.6 million of additional new notes, which have a put value price of $14.54 per share, representing a put premium of 17.2% above the closing price of the company's class A common shares on Thursday.
Full terms of the new securities are listed in the table below.
Settlement is slated for Oct. 7.
The Bank of New York Mellon Trust Co., NA is the trustee.
Forest City is a Cleveland-based real estate company.
New notes
| Issuer: | Forest City Enterprises, Inc.
|
| Issue: | Putable equity-linked senior notes
|
| Total amount: | $200 million
|
| Maturity: | Oct. 15, 2014
|
| Coupon: | 3 5/8%, payable semiannually
|
| Put value price: | $14.54
|
| Termination put price: | $18.90
|
| Put: | At anytime prior to the earlier of the maturity date and 20 days after the date the company first delivers a put termination notice, which Forest City may elect to do if the daily volume-weighted average price of its class A stock is at or above 130% of the put value price for at least 20 trading days in any 30-day period
|
| Initial cash redemption: | Oct. 15, 2013
|
| Announcement date: | Oct. 2
|
| Settlement date: | Oct. 7
|
| Stock symbol: | NYSE: FCE.A
|
| Stock price: | $12.41
|
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