CLEVELAND, Sept. 11, 2013 /PRNewswire/ -- Forest City
Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it
has provided notice of its intention to redeem all of its
outstanding 7.375% Senior Notes due 2034 (NYSE: FCY) (the
"Notes").
(Logo: http://photos.prnewswire.com/prnh/20080515/FRSTCTYLOGO
)
There is currently $225.0 million
aggregate principal amount of the Notes outstanding. Funding for
the redemption comes primarily from liquidity generated by the
company's previously announced joint ventures with QIC for a
portfolio of eight of Forest City's regional malls, of which seven
of the joint ventures closed on September
10, 2013. The eighth joint venture is expected to
close in the near future.
"This redemption is another example of our continuing focus on
strengthening our balance sheet and building a strong, sustaining
capital structure," said David J.
LaRue, Forest City president and chief executive
officer. "With the redemption of these Notes, all of our
remaining corporate debt securities are convertible, giving us
significant flexibility as we continue to improve our debt metrics,
while also investing in our mature portfolio and in entitled
development opportunities in our core markets."
The Company has provided notice to the indenture trustee, The
Bank of New York Mellon Trust Company, N.A., of its intention to
redeem, on October 14, 2013 (the
"Notes Redemption Date"), all of the outstanding Notes, pursuant to
the terms of the Notes. The redemption price will be 100
percent of the principal amount of the Notes redeemed, plus any
accrued and unpaid interest up to, but not including, the Notes
Redemption Date.
The Bank of New York Mellon Trust Company, N.A. will serve as
the paying agent in connection with the redemption. Notes may
be surrendered for redemption to The Bank of New York Mellon, 111
Sanders Creek Parkway, East Syracuse,
NY 13057.
About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real
estate company with $10.7 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 its liquidity, ability to finance or
refinance projects and repay its debt, the impact of the current
economic environment on its ownership, development and management
of its real estate portfolio, general real estate investment and
development risks, vacancies in its properties, the strategic
decision to reposition or divest portions of the company's land
business, 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, its substantial debt
leverage and the ability to obtain and service debt, the impact of
restrictions imposed by its 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 its 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 its publicly traded securities, inflation
risks, litigation risks, cybersecurity risks and cyber incidents,
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.