CLEVELAND, Feb. 16 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc. (NYSE: FCEA; FCEB) today announced that a subsidiary has secured a $161.9 million refinancing from Gramercy Capital Corp. and certain co-lenders on a key loan associated with the Company's Atlantic Yards project in Brooklyn, New York.
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The original loan covered land acquisition costs at the project site and was set to come due this month. The refinancing will be due in February, 2011.
"This is a great outcome, especially given current market conditions, and I applaud the work of our New York team in making this happen," said Charles A. Ratner, Forest City Enterprises president and chief executive officer. "This is a key step in our strategy of proactively managing our debt maturities. By working closely with Gramercy Capital Corp to secure this refinancing, we have put Atlantic Yards in a position to achieve the vision of economic revitalization, job creation and affordable housing for the future of Brooklyn."
Joanne Minieri, president and chief operating officer of Forest City Ratner Companies, the Brooklyn-based subsidiary of Forest City Enterprises, said, "The Atlantic Yards project has never been more important for Brooklyn. We appreciate the vote of confidence this refinancing represents, and we are as committed as ever to moving forward with this critical project."
About Forest City
Forest City Enterprises, Inc. is a $10.9-billion, NYSE-listed national real estate company. 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 http://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, general real estate development and investment risks including lack of satisfactory financing, construction and lease-up delays and cost overruns, the impact of current market volatility on our development pipeline, liquidity and ability to finance projects, dependence on rental income from real property, reliance on major tenants, the effect of economic and market conditions on a nationwide basis as well as in our primary markets, vacancies in our properties, downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, department store consolidations, international activities, the impact of terrorist acts, risks associated with an investment in and operation of a professional sports team, conflicts of interests, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility, the level and volatility of interest rates, the continued availability of tax-exempt government financing, effects of uninsured or underinsured losses, environmental liabilities, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, changes in market conditions, litigation risks, and other risk factors as disclosed 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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