Forest City greenshoe exercised, lifts convertibles to $200 million

By Marisa Wong

Milwaukee, Oct. 23 - Forest City Enterprises, Inc. announced that the underwriters of its recent offering of convertible senior notes due 2016 have exercised the $25 million over-allotment option in full, raising the total size of the issue to $200 million.

Forest City priced $175 million of seven-year convertibles on Oct. 20 to yield 5% with an initial conversion premium of 27.5%.

The offering is expected to close Oct. 26.

Bank of America Merrill Lynch and Barclays Capital Inc. are the bookrunners.

Net proceeds are expected to total $177.3 million and will be used to reduce outstanding borrowings on the company's $750 million revolving credit facility and for general corporate purposes.

Cleveland-based Forest City is a real estate company.

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