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October 26, 2009
Forest City Announces Exercise of Overallotment Option by Initial Purchasers of Convertible Senior Notes
Reuters
Forest City Enterprises, the parent company of the developer of Atlantic Yards, wants everyone to know about its latest move to get its balance sheet in order:
CLEVELAND, Oct. 23 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that the initial purchasers of the Company's recently announced offering of $175 million aggregate principal amount of convertible senior notes due 2016 (the "Notes"), have exercised in full their option to purchase an additional $25 million aggregate principal amount of the Notes to cover overallotments.
With the initial purchasers' exercise of the full overallotment option, Forest City estimates that the net proceeds from the offering will be approximately $177.3 million, after deducting the initial purchasers' discounts, estimated offering expenses and the cost of convertible note hedge transactions. Forest City expects to use the net proceeds from the offering to reduce outstanding borrowings on the Company's $750 million revolving credit facility and for general corporate purposes, which, depending on prevailing market conditions, could include the repayment of debt with earlier maturities. The closing of the offering is expected to occur on October 26, 2009.
Posted by lumi at October 26, 2009 6:47 AM