Forest City exercises accordion, increasing revolver to $450 million

By Angela McDaniels

Tacoma, Wash., April 25 - Forest City Rental Properties Corp. increased the size of its revolving credit facility to $450 million on Thursday through the full exercise of its accordion feature, according to an 8-K filed with the Securities and Exchange Commission by parent company Forest City Enterprises, Inc.

KeyBank, NA and PNC Bank, NA increased their commitment amounts by $2.5 million each, and new lender Credit Agricole Corporate and Investment Bank committed $20 million.

The three-year facility, with an additional one-year extension option, originally closed on March 30 at $425 million.

The interest rate is Libor plus 375 basis points with a 1% Libor floor.

The revolver is "one piece of our ongoing efforts to manage corporate recourse debt, improve our liquidity and balance sheet and position the company to take advantage of future growth opportunities," president and chief executive officer Charles Ratner said in a company news release.

KeyBank is the administrative agent.

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

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