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Forest City talks $1.25 billion term loan B at Libor plus 375-400 bps
By Sara Rosenberg
New York, Oct. 16 – Forest City Enterprises LP launched on Tuesday its $1.25 billion seven-year covenant-light term loan B (B2/B+) with price talk of Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.
The term loan has 101 soft call protection for six months, and a ticking fee of half the margin from days 31 to 60 and the full margin onwards.
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, Bank of Nova Scotia and US Bank are the arrangers on the deal.
Commitments are due at noon ET on Oct. 26, the source added.
Proceeds will be used to help fund the acquisition of the company by Brookfield Asset Management Inc.
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 some 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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