Forestar to pay down term loan with proceeds of notes, convertibles

By Toni Weeks

San Diego, May 31 - Forestar Group Inc. said that its wholly owned subsidiary, Forestar (USA) Real Estate Group Inc., plans to use the proceeds from its $150 million offering of senior secured notes due 2019 to repay the amounts outstanding under the company's term loan portion of its senior secured credit facility and to use any remaining amounts for general corporate purposes, including the repayment of borrowings under its revolving loans under its senior secured credit facility.

Forestar also said that it intends to use the net proceeds from its offering of $100 million of convertible senior notes due 2018 to pay the cost of the capped call transactions and for general corporate purposes, including investments in strategic growth opportunities.

Forestar is an Austin, Texas-based company engaged in real estate and natural resources businesses.

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