Forest City Enterprises to swap stock for $110 million 5% convertibles

By Angela McDaniels

Tacoma, Wash., Jan. 27 - Forest City Enterprises, Inc. agreed to exchange $110 million principal amount of its 5% convertible senior notes due 2016 for 9,774,033 shares of its class A common stock plus accrued interest, according to a company news release.

The number of shares to be exchanged includes 1,866,199 shares as inducement.

The company said the exchanges reflect its "continuing focus on reducing overall leverage and improving its balance sheet."

About $90 million of the convertibles will remain outstanding after the exchanges.

Forest City is a Cleveland-based real estate company.

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