Forest City Enterprises to swap stock for $40 million 5% convertibles

By Susanna Moon

Chicago, May 5 - Forest City Enterprises, Inc. said it will exchange $40 million principal amount of its 5% convertible senior notes due 2016 for about 3,444,296 class A common shares plus accrued interest.

The total amount also includes 568,720 shares as inducement, and the exchanges reflect the company's continuing focus on reducing overall leverage and improving its balance sheet, according to a company press release.

Forest City said it entered into separate privately negotiated exchange agreements.

After the exchanges, there will be $50 million of the notes outstanding.

The company said on Jan. 27 that it agreed to exchange $110 million of its convertibles for 9,774,033 of its class A shares plus accrued interest. The number of shares also included 1,866,199 shares as inducement.

Forest City is a Cleveland-based real estate company.

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