Key Bank, Others Provide Forest City With $465MM Revolver
Forest City Enterprises announced that it closed a new $465 million credit facility with a 14-member bank group. The three-year facility, with an additional one-year extension option, allows for additional banks to join the group, up to a maximum line of $500 million.
The new facility replaces the company’s prior revolving credit facility, which was scheduled to mature in March 2014. Key Bank will serve as administrative agent, PNC Bank will serve as syndication agent and Bank of America will serve as documentation agent for the group.
Thirteen banks that were members of the company’s prior bank group, along with one new bank, are part of the new facility. In addition, four member banks increased their commitments, compared with the prior facility.
“This new credit facility is another step in positioning Forest City to take advantage of opportunities in our core markets and products,” said David J. LaRue, Forest City president and chief executive officer. “The more favorable pricing and covenants also give us additional flexibility in managing our business. We’re gratified by the confidence and support shown by all of our member banks, and I want to thank our internal finance team, led by CFO Bob O’Brien, in achieving this great outcome.”
Forest City Enterprises is an NYSE-listed national real estate company that is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land.