Forest City amends loan to push out maturity, reduce interest rate

By Sara Rosenberg

New York, April 13 - Forest City Rental Properties Corp. amended its credit facility, extending the maturity by one year to March 2008, lowering the interest rate to Libor plus 195 basis points and eliminating the higher interest rate tier on the last $50 million of borrowings, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Furthermore, the unused commitment fee was reduced to 25 basis points from 37.5 basis points if revolver usage is less than 50% and to 15 basis points if revolver usage is greater than 50%.

And, the amendment calls for an accordion feature that allows the company to increase revolver availability by $100 million in the next 24 months.

KeyBank is the administrative agent on the deal.

The amendment was completed on April 7.

Forest City is a Cleveland-based commercial and residential real estate company.

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