Forest City readies launch of $1.25 billion term loan B for Tuesday

By Sara Rosenberg

New York, Oct. 15 – Forest City Enterprises LP is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch its $1.25 billion seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, TD Securities (USA) LLC, Barclays, BMO Capital Markets, CIBC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, the Bank of Nova Scotia and US Bank are the arrangers on the deal.

The term loan has 101 soft call protection for six months, the source said.

Proceeds will be used to help fund the acquisition of the company by Brookfield Asset Management Inc.

The company previously disclosed that it also plans on getting a $350 million revolver as part of its loan financing package for the transaction.

Under the agreement, Forest City is being bought for $25.35 per share in an all-cash transaction valued at $11.4 billion, including debt.

Closing is expected in the fourth quarter, subject to certain conditions, including the approval of Forest City’s stockholders. The transaction is not contingent on financing.

Forest City is a Cleveland-based real estate company.

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