Forestar lifts revolver to $300 million, extends to 2017

By Toni Weeks

San Luis Obispo, Calif., May 16 - Forestar Group Inc. and Forestar (USA) Real Estate Group Inc. entered into amendments to their second amended and restated revolving and term credit agreement on May 15, increasing the revolving loan commitment to $300 million from $200 million, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has an accordion feature to potentially further boost the facility by up to $200 million with additional commitments.

Additionally, the maturity date was extended to May 15, 2017 with two one-year extension options.

The company also increased the minimum interest coverage ratio to 2.5 times from 1.5 times, increased the maximum total leverage ratio to 50% from 40% and eliminated the collateral value to loan commitment ratio covenant.

Interest is still at Libor plus 400 basis points.

KeyBank NA is the swingline lender and agent and a lender. KeyBanc Capital Markets is the arranger and bookrunner. JPMorgan Chase Bank, NA is the syndication agent, and Amegy Bank NA and Capital One NA are co-documentation agents.

Forestar is an Austin, Texas-based real estate and oil and natural gas company.

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