Forestar amends and restates credit facility, pushing out maturities

By Sara Rosenberg

New York, Aug. 6 - Forestar Group Inc. amended and restated its credit facility on Friday, extending the revolver maturity to Aug. 3, 2013 and the term loan maturity to Aug. 3, 2015, according to an 8-K filed with the Securities and Exchange Commission.

In addition, the size of the revolver was reduced to $175 million, but provides for a $150 million accordion feature.

Pricing on the amended facility is Libor plus 450 basis points.

The amendment also eliminated any additional required commitment reductions during the term of the facility, reduced the interest coverage ratio to 1.05 times from 1.75 times and reduced the minimum value to commitment ratio to 1.60:1.00 from 1.75:1.00.

Prepayments on the term loan exceeding $25 million are subject to call protection of 103 in the first six months, 102 in the following six months and 101 for the six months thereafter.

KeyBank is the administrative agent on the deal.

Forestar is an Austin, Texas-based company engaged in real estate and natural resources businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.