CLEVELAND, June 28, 2012 /PRNewswire/ -- Forest City
Enterprises, Inc. (NYSE: FCEA and FCEB) today announced pricing of
its offering of $125 million
aggregate principal amount of 7.375 percent Senior Notes Due 2034
(NYSE: FCY) (the "Notes"). The offering price of the Notes will be
$24.1078, including accrued interest
from May 1, 2012. 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 are being 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 being 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 estimates that the net proceeds from this
offering will be approximately $115.9
million (or approximately $133.4
million if the underwriters' option is exercised in full),
after deducting 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 will be 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 preliminary 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, when
available, 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.