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Forest City to issue stock, pay cash in exchange for $133.7 million convertible preferreds
By Susanna Moon
Chicago, Oct. 16 - Forest City Enterprises, Inc. said it will exchange about $133.7 million liquidation preference, or 2.7 million shares, of its outstanding series A cumulative perpetual convertible preferred stock for about 8.8 million shares of its class A common stock plus $13.9 million in cash.
The company entered into separate privately negotiated exchange agreements, and the number of shares to be issued in the exchanges reflects the current conversion rate for the preferreds, according to a press release.
Payment also will include dividends due Dec. 15 and March 15, 2013.
The exchange reflects the company's continuing focus on building a "strong, sustaining capital structure," the release noted.
After settlement, about 1.7 million shares of the preferreds will remain outstanding.
Forest City is a Cleveland-based real estate company.
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