Forest City to use convertibles proceeds to reduce revolver, cut debt

By Toni Weeks

San Diego, July 13 - Forest City Enterprises, Inc. said it will use the net proceeds from its planned offering of $250 million convertible senior notes due 2018 to reduce outstanding borrowings under its $450 million revolving credit facility, according to a news release.

Some of the proceeds also will be used to repay some mortgage debt and notes payable, nonrecourse, to repay its $46.9 million of putable equity-linked senior notes due 2011 and for general corporate purposes, the company said.

The company plans to invest the remaining net proceeds in short-term investment-grade securities.

Forest City is a Cleveland-based real estate company.

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