Forest City refinances revolver with $465 million three-year facility

By Susanna Moon

Chicago, Feb. 25 - Forest City Enterprises, Inc. said it obtained a $465 million three-year credit facility with 14 banks, including Key Bank, NA as administrative agent.

The facility includes a one-year extension option and allows for other banks to join the group, up to a maximum line of $500 million.

The facility replaces the company's revolving credit facility, which was set to mature in March 2014.

Thirteen banks were members of the company's prior bank group, and one bank was added as part of the new facility. In addition, four member banks increased their commitments.

The facility also includes a provision allowing the repurchase of up to $100 million of the company's class A common stock over the term of the facility, in line with the share repurchase program announced by the company in December, the release noted.

PNC Bank, NA is the syndication agent, and Bank of America, NA is the documentation agent for the group.

"This new credit facility is another step in positioning Forest City to take advantage of opportunities in our core markets and products," David J. LaRue, Forest City president and chief executive officer, said in the release.

"The more favorable pricing and covenants also give us additional flexibility in managing our business."

Forest City is a Cleveland-based real estate company.

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