Forest City greenshoe exercised, ups 3.625% convertibles to $300 million

By Tali David

Minneapolis, July 23 - Forest City Enterprises, Inc. said the over-allotment option on its offering of 3.625% convertible senior notes due 2020 was exercised in full, increasing the offering by $50 million, according to a press release.

As previously reported, the company priced $250 million of the seven-year convertibles on July 16.

BofA Merrill Lynch, Barclays, Citigroup Capital Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners of the deal.

Proceeds are earmarked to repay the balance of Forest City's 6½% senior notes due 2017 and other outstanding debt.

Proceeds will be held in an escrow account and invested in short-term, investment-grade securities.

Forest City is a Cleveland-based real estate developer with $10.6 billion in assets.

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