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

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

PR Newswire

CLEVELAND, Feb. 26, 2013

CLEVELAND, 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").

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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

"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."

The Company provided notice to its transfer agent,Wells Fargo Shareowner
Services, of its intention to redeem, on March 15, 2013 (the "Preferred Stock
Redemption Date"), all of the outstanding shares of Preferred Stock pursuant
to the terms of the Preferred Stock. The redemption price will be 100 percent
of the liquidation preference of the Preferred Stock redeemed, plus any
accrued and unpaid dividends up to, but not including, the Preferred Stock
Redemption Date. Holders of the Preferred Stock may convert their shares into
shares of the Company's Class A Common Stock according to the terms of the
Preferred Stock up to the close of business on March 14, 2013. 

In a separate transaction, the Company has provided notice to the indenture
trustee, The Bank of New York Mellon Trust Company, N.A., of its intention to
redeem, on March 29, 2013 (the "Notes Redemption Date"), all of the
outstanding Notes, pursuant to the terms of the Notes. The redemption price
will be 100 percent of the principal amount of the Notes redeemed, plus any
accrued and unpaid interest up to, but not including, the Notes Redemption

About Forest City
Forest City Enterprises, Inc. is an NYSE-listed national real estate company
with $10.7 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

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, the impact of
current lending and capital market conditions on its liquidity, ability to
finance or refinance projects and repay its debt, the impact of the current
economic environment on its ownership, development and management of its real
estate portfolio, general real estate investment and development risks,
vacancies in its properties, further downturns in the housing market,
competition, illiquidity of real estate investments, bankruptcy or defaults of
tenants, anchor store consolidations or closings, international activities,
the impact of terrorist acts, risks associated with an investment in a
professional sports team, its substantial debt leverage and the ability to
obtain and service debt, the impact of restrictions imposed by its credit
facility and senior debt, exposure to hedging agreements, the level and
volatility of interest rates, the continued availability of tax-exempt
government financing, the impact of credit rating downgrades, effects of
uninsured or underinsured losses, effects of a downgrade or failure of our
insurance carriers, environmental liabilities, conflicts of interest, risks
associated with the sale of tax credits, risks associated with developing and
managing properties in partnership with others, the ability to maintain
effective internal controls, compliance with governmental regulations,
increased legislative and regulatory scrutiny of the financial services
industry, volatility in the market price of its publicly traded securities,
inflation risks, litigation risks, as well as other risks listed from time to
time in the company's SEC filings, including but not limited to, the company's
annual and quarterly reports.


SOURCE Forest City Enterprises, Inc.

Contact: Robert O'Brien, Executive Vice President - Chief Financial Officer,
+1-216-621-6060, or Jeff Linton, Senior Vice President - Corporate
Communication, +1-216-621-6060
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