CLEVELAND, Nov. 18 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that it has reached an agreement on a new, two-year, $500 million revolving credit facility with its 15-member bank group. The transaction is expected to close by the end of the year.

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"This is a major step in our ongoing efforts to further improve liquidity and strengthen our financial position," said Charles A. Ratner, Forest City president and chief executive officer. "We're deeply gratified by the support shown by the members of our bank group in this process. In addition, I want to congratulate our finance team, led by Bob O'Brien, Forest City's chief financial officer, for all of their efforts in reaching this agreement."

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. All 14 members of the Company's prior bank group, along with one new bank, are part of the new facility. The new facility replaces Forest City's prior $750 million credit facility, which was scheduled to mature in March 2010.

About Forest City

Forest City Enterprises, Inc., is an $11.7 billion NYSE-listed national real estate company. 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 market conditions on our liquidity, ability to finance or refinance projects and repay our debt, 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, environmental liabilities, conflicts of interest, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, volatility in the market price of our publicly traded securities, 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.

SOURCE Forest City Enterprises, Inc.

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