Forestar Group (FOR) new issue 06/08/11

$100m senior unsec cb pricing wed night from GS. Terms: 7 yr 3.5-4% up 22.5-27.5%, pctns Cont w/$150m HY sec deal UOP = repay credit fac/hedge/gcpgcp. Co invests in real estate, oil & gas properties & forested land. 65% rev=r/estate biz which has been weak. Nat/resource biz has also struggled due to low NG prices & reduced leasing activity. Lev high @8x but liq OK.

HY px talk L+550 to 2019.
CB = L+650 assumption

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