CLEVELAND, March 31, 2011 /PRNewswire/ -- Forest City
Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it
has closed a new, $425 million
revolving credit facility with a 13-member bank group. The
new, three-year facility with an additional one-year extension
option, also allows for additional banks to join the group, up to a
maximum line of $450 million.
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"This closing is an important step in preparing Forest City to
take advantage of improving conditions in real estate and in the
markets we serve," said Charles A.
Ratner, Forest City president and chief executive officer.
"The new line has more favorable pricing and covenants, as well as
a longer term with an extension option, all of which will be
beneficial in managing our business going forward and taking
advantage of future growth opportunities. We're gratified by the
support and confidence shown by the members of our bank group in
bringing this new credit facility to closing. I also want to
congratulate our internal finance team, led by Bob O'Brien and
Judith Wolfe, for all of their
efforts."
Key Bank National Association will serve as Administrative
Agent, PNC Bank National Association will serve as Syndication
Agent, and Bank of America, N.A. will serve as Documentation Agent
for the group. Eleven banks that were members of the Company's
prior bank group, along with two new banks, are part of the new
facility. The new facility replaces Forest City's prior revolving
credit facility, which was scheduled to mature in February,
2012.
About Forest City
Forest City Enterprises, Inc. is a NYSE-listed national real
estate company with $11.8 billion in
total assets. The Company is principally engaged in the ownership,
development, management and acquisition of commercial and
residential real estate and land throughout the United States. For more information, visit
www.forestcity.net.
Safe Harbor Language
Statements made in this news release that state the Company's or
management's intentions, hopes, beliefs, expectations or
predictions of the future are forward-looking statements. The
Company's actual results could differ materially from those
expressed or implied in such forward-looking statements due to
various risks, uncertainties and other factors. Risks and factors
that could cause actual results to differ materially from those in
the forward-looking statements include, but are not limited to, the
impact of current lending and capital market conditions on our
liquidity, ability to finance or refinance projects and repay our
debt, the impact of the current economic environment on our
ownership, development and management of our real estate portfolio,
general real estate investment and development risks, vacancies in
our properties, further downturns in the housing market,
competition, illiquidity of real estate investments, bankruptcy or
defaults of tenants, anchor store consolidations or closings,
international activities, the impact of terrorist acts, risks
associated with an investment in a professional sports team, our
substantial debt leverage and the ability to obtain and service
debt, the impact of restrictions imposed by our credit facility and
senior debt, exposure to hedging agreements, the level and
volatility of interest rates, the continued availability of
tax-exempt government financing, the impact of credit rating
downgrades, effects of uninsured or underinsured losses, effects of
a downgrade or failure of our insurance carriers, environmental
liabilities, conflicts of interest, risks associated with the sale
of tax credits, risks associated with developing and managing
properties in partnership with others, the ability to maintain
effective internal controls, compliance with governmental
regulations, increased legislative and regulatory scrutiny of the
financial services industry, volatility in the market price of our
publicly traded securities, inflation risks, litigation
risks, as well as other risks listed from time to time in the
Company's SEC filings, including but not limited to, the Company's
annual and quarterly reports.
ON THE WEB
www.forestcity.net
SOURCE Forest City Enterprises, Inc.
