Forest City Enterprises, Inc. (FCEA,FCEB: Quote) said Tuesday that it has closed its offering of $125 million aggregate principal amount of 7.375 percent Senior Notes due 2034.
The company has granted the underwriters a 30-day option to purchase up to an additional $18.75 million principal amount of the Notes to cover overallotments.
Net proceeds from this offering was about $115.9 million, after deducting estimated offering expenses and the underwriters' discount.
Forest City intends to use the net proceeds 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 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.
Click here to receive FREE breaking news email alerts for Forest City Enterprises and others in your portfolio
by RTT Staff Writer
For comments and feedback: email@example.com