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Forest City expands facility to $500 million, adds Citibank as lender
By Susanna Moon
Chicago, July 8 - Forest City Enterprises, Inc. said it increased the size of its revolving facility to $500 million by exercising the accordion of its credit agreement and adding Citibank NA as a lender.
The expansion reflects increased commitments from KeyBank NA and PNC Bank, NA, according to a company press release.
"This expansion of our credit facility will give us additional flexibility in operating our business," David J. LaRue, Forest City president and chief executive officer, said in the press release.
"It also reflects the continuing confidence of our bank group in the company and its strategic direction. We are grateful for their continued support and commitment."
Forest City said on Feb. 25 that it obtained a $465 million three-year credit facility with 14 banks, including Key Bank, NA as administrative agent.
The facility included a one-year extension option and allowed for other banks to join the group, up to a maximum line of $500 million.
The facility replaced 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 2012, according to a previous press release.
PNC Bank, NA was the syndication agent, and Bank of America, NA was the documentation agent for the group.
Forest City is a Cleveland-based real estate company.
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