Skip to main content

Featured Post

Atlantic Yards/Pacific Park graphic: what's built/what's coming + FAQ (pinned post)

What should $20 million buy? What can Forest City afford?

Forest City Ratner reportedly wants to pay just $20 million to the Metropolitan Transportation Authority for the portion of the Vanderbilt Yard it needs to build the Atlantic Yards arena. It initially promised to pay $100 million for the whole railyard. This series attempts to add some context.

Can FCR only afford $20 million? Its parent company seems to be doing better.

From Forest City Enterprises CEO Chuck Ratner's remarks yesterday in press release reporting first-quarter revenue:
"Several significant events occurred after the end of the first quarter. Foremost among these was our successful offering of Class A common shares, which closed May 19. Including over-allotments exercised by the underwriters, the total offering was 52.3 million shares, and generated total net proceeds of $330.4 million, after deducting underwriting discounts and commissions. The proceeds have been used to repay borrowings on our corporate credit facility."

Also from the press release:
At April 30, 2009, Forest City had $509 million in cash and credit available, including $212 million ($204 million at full consolidation) in cash on its balance sheet and $297 million of available capacity on its revolving line of credit. In addition, as previously noted, after the end of the first quarter, the Company received net proceeds of $330.4 million from the issuance of new Class A common stock.

Also from the press release:
During the first quarter of 2009, the Company achieved the following milestones:
-- On February 16, the Company announced that it secured a $161.9 million refinancing from Gramercy Capital Corp. and certain co-lenders on a key land loan associated with the Atlantic Yards project in Brooklyn.
-- On March 17, the Company announced that it secured an extension of a $65 million credit facility related to the Nets basketball team.