Forest City Enterprises, a Cleveland-based real estate company, has expanded its credit facility by $100 million and added three new banks to its group. The maturity date on the $350 million facility, led by Key Bank and National City Bank, has been extended from 2003 to 2006, said Thomas Kmiecik, assistant treasurer. Explaining the timing of the increase, Kmiecik said Forest City has several projects under construction. He added that the move for the increase led the company to also extend the maturity. "When you go in with that type of change, you look at the maturity also," he said.
The new members of the bank syndicate are FleetBoston Financial, Fifth Third Bank and Provident Bank. Kmiecik believes the overall credit environment has changed in the last two years, but he did not perceive the credit to be any more difficult to increase. One factor is real-estate sector willingness to demonstrate very good financial disclosure, he noted. "There has been an effort to talk about cash flow and real estate has value," Kmiecik cited as two possible factors for a smooth syndication. The interest-rate level has stayed the same, he said, declining to state the spread.