Forest CityRealty Trust Inc. has boosted its unsecured credit facility to $600million from $500 million through the exercise of the accordion feature.
The company also said it closed a new credit agreementproviding for a $335 million, five-year term loan facility. The term loanfacility is expected to be priced at LIBOR plus 145 basis points, based on thecompany's March 31 leverage. It must be drawn by Nov. 30.
Forest City plans to use borrowings under the term loanalong with asset sale proceeds to address the 2017 mortgage maturity on thecompany's interest in the New York Times building in midtown Manhattan, N.Y.The interest comprises 735,000-square-feet of class A office space on floors 28through 50 and 23,000 square feet of street-level retail. The mortgage is $640million and interest-only, with a fixed interest rate of 6.4%.
Forest City expects to incur a prepayment penalty between$30 million and $35 million.
Merrill Lynch Pierce Fenner & Smith Inc. and