Forest City Announces Redemptions of Preferred Stock and 7.625 Percent Senior Notes Due 2015

David J. LaRue

CLEVELAND, OH, Feb. 26, 2013 /PRNewswire/ -- Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) today announced that it has provided notices of its intention to redeem all outstanding shares of its Series A Cumulative Perpetual Convertible Preferred Stock (the "Preferred Stock"), and all outstanding 7.625 percent Senior Notes due 2015 (the "Notes").

Approximately 209,877 shares of Preferred Stock, or $10.5 million aggregate liquidation preference, are currently outstanding, and approximately $53.3 million aggregate principal amount of the Notes are currently outstanding. Redemption of the outstanding securities will reduce annualized fixed charges, in the form of interest expense and dividend payments, by approximately $4.8 million.

"These transactions are another example of our ongoing focus on strengthening our balance sheet and building a strong, sustaining capital structure," said David J. LaRue, Forest City president and chief executive officer. 

"We are committed to continuing to improve our debt metrics, while also pursuing operational excellence and selectively investing in new development opportunities, primarily through existing entitlement in our core markets."

For a complete copy of the company’s news release, please contact:  

 Robert O'Brien,

Executive Vice President and

Chief Financial Officer,

+1-216-621-6060, or

Jeff Linton,

Senior Vice President  

Corporate Communication,

+1-216-621-6060

Web Site: http://www.forestcity.net