CLEVELAND, July 1, 2011 /PRNewswire/ -- Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced that it has completed early retirement of three Urban Development Action Grants, totaling $15.4 million, that were part of the original financing of the company's Tower City Center mixed-use project in downtown Cleveland. Forest City will pay the city $10.4 million to retire the loans, which had maturities in 2016 and 2020.
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The City of Cleveland approached Forest City and proposed the buyout as a way to raise funds for current city needs, including economic development and neighborhood projects.
"The City of Cleveland reinvests UDAG repayments to support Economic Development projects in our city," said Mayor Frank G. Jackson. "By working with us to repay their UDAG early, Forest City saves money on a long-term loan and the city receives an infusion of cash now to ensure that projects continue to move forward during this period of revitalization in our city."
Forest City President and Chief Executive Officer David J. LaRue commented, "We're happy to assist the city as it seeks creative solutions to meet the need for services and programs in a fiscally responsible manner. The early retirement of this debt is also in keeping with our corporate objective of improving our balance sheet and overall debt metrics."
About Forest City
Forest City Enterprises, Inc. is a NYSE-listed national real estate company with $11.5 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. For more information, visit www.forestcity.net.
SOURCE Forest City Enterprises, Inc.
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