May 26, 2009 (FinancialWire) — Forest City Enterprises, Inc. (NYSE: FCEA) said that the underwriters of the company’s 45.5 million common share offering have exercised in full their over-allotment option to purchase an additional 6.8 million shares. Merrill Lynch & Co. 9NYSE: MER), Goldman, Sachs & Co. (NYSE: GS) and Morgan Stanley (NYSE: MS) are the joint book-running managers.

The company recently offered 45.5 million class A common shares priced at $6.60 per share.

Forest City said it expects to receive net proceeds from this offering of around $329.8 million, giving effect to the exercise of the over-allotment option.

The company plans to use the net proceeds from the sale to reduce its outstanding borrowings under the company’s $750 million revolving credit facility.

Cleveland-based Forest City Enterprises is a real estate company that is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.

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