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February 17, 2009

PRESS RELEASE: Forest City Secures Refinancing on Key Loan for Brooklyn Project

Forest City Enterprises continues to try to reassure investors by issuing a press release every time they secure financing. This week the company ducked a major blow by ponying up $15 million to Gramercy Capital in exchange for a two-year extension on a bridge loan for Atlantic Yards.

From PR Newswire:

CLEVELAND, Feb. 16 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA) (NYSE: FCEB) today announced that a subsidiary has secured a $161.9 million refinancing from Gramercy Capital Corp. and certain co-lenders on a key loan associated with the Company's Atlantic Yards project in Brooklyn, New York.

The original loan covered land acquisition costs at the project site and was set to come due this month. The refinancing will be due in February, 2011.

"This is a great outcome, especially given current market conditions, and I applaud the work of our New York team in making this happen," said Charles A. Ratner, Forest City Enterprises president and chief executive officer. "This is a key step in our strategy of proactively managing our debt maturities. By working closely with Gramercy Capital Corp to secure this refinancing, we have put Atlantic Yards in a position to achieve the vision of economic revitalization, job creation and affordable housing for the future of Brooklyn."

Joanne Minieri, president and chief operating officer of Forest City Ratner Companies, the Brooklyn-based subsidiary of Forest City Enterprises, said, "The Atlantic Yards project has never been more important for Brooklyn. We appreciate the vote of confidence this refinancing represents, and we are as committed as ever to moving forward with this critical project."

This press release seems to have been issued due to inquiries from reporter Michelle Jarboe of The Cleveland Plain Dealer, who posted two items on the deal (first reported on the NY Times City Room blog), one before the press release was issued and one afterward.

Posted by lumi at February 17, 2009 4:44 AM