Forestar amends loan, removing leverage ratio decrease upon extension

By Sara Rosenberg

New York, Oct. 3 - Forestar Group Inc. amended its credit facility, eliminating a required decrease in the maximum leverage ratio to 30% in the event a one-year extension option was exercised, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The company then used the one-year extension option, pushing the maturity date out to Aug. 6, 2014.

In addition, the amendment revised the borrowing base to increase the advance rate for timberland to 45% from 35%, to increase the advance rate for high value timberland to 35% from 25%, and to increase the percentage of the overall borrowing base that may be comprised of high value timberland to 25% from 15%.

And, the amendment reduced the value to commitment ratio to 1.50 times from 1.6 times.

The amendment was completed on Sept. 30.

KeyBank is the agent on the deal.

Forestar Group is an Austin, Texas-based company that operates in three business segments: real estate, mineral resources and fiber resources.

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