CLEVELAND, July 3, 2012 /PRNewswire/ -- Forest City
Enterprises, Inc. (NYSE: FCEA and FCEB) today announced the closing
of its offering of $125 million
aggregate principal amount of 7.375 percent Senior Notes Due 2034
(NYSE: FCY) (the "Notes"). Forest City has also granted the
underwriters a 30-day option to purchase up to an additional
$18.75 million principal amount of
the Notes to cover overallotments.
(Logo: http://photos.prnewswire.com/prnh/20080515/FRSTCTYLOGO
)
The Notes were offered as additional notes under an indenture
pursuant to which the company issued $100
million aggregate principal amount of 7.375 percent Senior
Notes Due 2034 on February 10, 2004.
The Notes offered and those previously issued will be treated as a
single series of debt securities under the indenture. The terms of
the Notes, other than their issue date and public offering price,
are identical to the previously issued notes and will trade
interchangeably with the previously issued notes. The Notes
may be redeemed by Forest City at any time at a redemption price
equal to the principal amount plus accrued and unpaid
interest. The Notes will be general senior unsecured
obligations of Forest City Enterprises, Inc.
Forest City received net proceeds from this offering of
approximately $115.9 million (and
expects to receive approximately $133.4
million if the underwriters' option is exercised in full),
after deducting estimated offering expenses and the underwriters'
discount. Forest City intends to use the net proceeds from
this offering to redeem a portion of its outstanding 7.625 percent
Senior Notes Due June 1, 2015.
Pending application of the net proceeds, the net proceeds will be
held in an escrow account and invested in short-term, investment
grade, interest-bearing securities.
The Notes were offered and sold under Forest City's shelf
registration statement filed with the Securities and Exchange
Commission (SEC) on December 9, 2011,
which was effective upon filing. A prospectus supplement
related to the offering has been filed with the SEC and is
available on the SEC's web site at http://www.sec.gov. Printed
copies of the prospectus supplement relating to this offering and
the accompanying prospectus may also be obtained by requesting
copies from Morgan Stanley & Co. LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, or Barclays Capital Inc. by
calling Morgan Stanley & Co. LLC toll free at 1-866-718-1649,
calling Merrill Lynch, Pierce, Fenner & Smith Incorporated toll
free at 1-800-294-1322, or calling Barclays Capital Inc. toll free
at 1-888-603-5847.
No Solicitation
This press release shall not constitute an offer to sell
or a solicitation of an offer to buy any securities nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or other jurisdiction.
Corporate Description
Forest City Enterprises, Inc. is an NYSE-listed national
real estate company with $10.5
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.
SOURCE Forest City Enterprises, Inc.