Forest City exchanges $75.7 million convertible preferreds for stock

New York, Dec. 13 - Forest City Enterprises, Inc. said it has agreed to exchange $75.7 million liquidation preference of its series A cumulative perpetual convertible preferred stock for 5 million shares of class A common stock.

The company will also pay $5.2 million in cash for fractional shares and dividends payable on March 15.

The exchanges will take place through separate privately negotiated exchanges and reflect the current conversion rate.

Forest City noted that the earliest date it could have redeemed the preferreds is March 9.

It said the exchanges were part of its "continuing focus on building a strong, sustaining capital structure and reducing fixed charges."

Following completion of the exchanges, Forest City will have $10.55 million liquidation preference of the preferreds outstanding.

Forest City is a Cleveland-based real estate company.

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