Forest City improves loan terms with $425 million three-year revolver

By Susanna Moon

Chicago, March 31 - Forest City Enterprises Inc. said it closed a new $425 million three-year revolving credit facility with a 13-member bank group to replace its revolver scheduled to mature in February 2012.

The facility has a one-year extension option and allows for additional banks to join the group for up to a maximum line of $450 million.

Key Bank NA is the administrative agent, PNC Bank NA is the syndication agent, and Bank of America, NA is the documentation agent for the group. Eleven banks that were members of the company's prior bank group, along with two new banks, are part of the new facility.

"This closing is an important step in preparing Forest City to take advantage of improving conditions in real estate and in the markets we serve," Charles A. Ratner, Forest City president and chief executive officer, said in a press release.

"The new line has more favorable pricing and covenants, as well as a longer term with an extension option, all of which will be beneficial in managing our business going forward and taking advantage of future growth opportunities."

Forest City is a Cleveland-based owner, developer, manager and acquirer of commercial and residential real estate properties.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.