May 14, 2009 (FinancialWire) — Forest City Enterprises, Inc. (NYSE: FCEA) has priced a public offering of 45.5 million newly issued class A common shares at $6.60 per share. Merrill Lynch & Co. (NYSE: MER), Goldman, Sachs & Co. (NYSE: GS) and Morgan Stanley (NYSE: MS) are the joint book-running managers.

The company has granted underwriters a 30-day option to purchase up to an additional 6.8 million shares to cover over-allotments.

Forest City Enterprises said it expect to see gross proceeds of around $300.3 million, or around $345.3 million if the underwriters’ over-allotment options is fully exercised.

The company plans to use the net proceeds from the sale to reduce its outstanding borrowings under its $750 million revolving credit facility and, if proceeds remain, for general corporate purposes.

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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