Forest City Closes New $425 Million Revolving Credit Facility

Mar 31, 2011, 08:15 ET from Forest City Enterprises, Inc.

CLEVELAND, March 31, 2011 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it has closed a new, $425 million revolving credit facility with a 13-member bank group.  The new, three-year facility with an additional one-year extension option, also allows for additional banks to join the group, up to a maximum line of $450 million.

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"This closing is an important step in preparing Forest City to take advantage of improving conditions in real estate and in the markets we serve," said Charles A. Ratner, Forest City president and chief executive officer. "The new line has more favorable pricing and covenants, as well as a longer term with an extension option, all of which will be beneficial in managing our business going forward and taking advantage of future growth opportunities. We're gratified by the support and confidence shown by the members of our bank group in bringing this new credit facility to closing. I also want to congratulate our internal finance team, led by Bob O'Brien and Judith Wolfe, for all of their efforts."

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. Eleven banks that were members of the Company's prior bank group, along with two new banks, are part of the new facility. The new facility replaces Forest City's prior revolving credit facility, which was scheduled to mature in February, 2012.

About Forest City

Forest City Enterprises, Inc. is a NYSE-listed national real estate company with $11.8 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. 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 lending and capital market conditions on our liquidity, ability to finance or refinance projects and repay our debt, the impact of the current economic environment on our ownership, development and management of our real estate portfolio, 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, effects of a downgrade or failure of our insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, volatility in the market price of our publicly traded securities, inflation risks,  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.  

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SOURCE Forest City Enterprises, Inc.



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