Forest City holders put $60 million 3.625% notes equity-linked notes

By Susanna Moon

Chicago, July 15 - Forest City Enterprises, Inc. holders put about $60 million of its 3.625% putable equity-linked senior notes due 2014 as of last Friday, the settlement date for the put option.

On July 12, holders received a total of about 4.1 million shares plus about $1.1 million for interest, according to a company press release.

As previously announced, holders could exercise their put option through June 20 and receive 68.7758 shares of the company's class A common stock per $1,000 principal amount of notes plus a cash payment for interest through Oct. 14.

After settlement, about $1.1 million principal amount of the notes remains outstanding.

The company said on May 31 that the notes would no longer be putable after June 20.

Holders could put their notes between May 31 and June 20 for number of shares equal to a conversion price of $14.54. The company's stock (NYSE: FCY) closed at $25.09 on May 31.

As of May 31, there were $61,147,000 notes outstanding.

"The elimination of these notes and ongoing interest payments reflects our continuing focus on further improving our balance sheet and debt metrics," David J. LaRue, Forest City president and chief executive officer, said in a company press release.

Forest City Enterprises is a real estate company based in Cleveland.

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