Forestar amends KeyBank credit facility’s tangible net worth covenant

By Marisa Wong

Morgantown, W.Va., Oct. 6 – Forestar Group Inc. amended its senior secured credit facility with KeyBank NA as lender, swingline lender and agent to waive the consolidated tangible net worth maintenance covenant for the quarter ended Sept. 30, according to an 8-K filing with the Securities and Exchange Commission.

The company also amended the consolidated tangible net worth maintenance covenant requirement to an amount equal to 80% of the actual consolidated tangible net worth as calculated using the Sept. 30 financial statements.

The amendment gives the company flexibility given ongoing market volatility and the continued decline in oil prices, which is expected to result in additional non-cash asset impairment charges in the company’s oil and gas segment for the quarter ended Sept. 30, the filing said.

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

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