AP News

Toll Bros. closes on $1.6B Shapell Industries deal


HORSHAM, Pa. (AP) — Luxury homebuilder Toll Brothers has closed on the $1.6 billion acquisition of privately held homebuilding business of Shapell Industries LLC.

The deal was first announced in November.

The acquisition includes about 5,200 home sites in coastal California communities.

About 100 Shapell employees will be joining Toll Brothers Inc., the company said Wednesday.

Toll Brothers financed the deal with a new $485 million five-year senior unsecured floating rate bank term loan, $600 million of recently issued five-year and 10-year senior unsecured debt and $230 million of common stock.

The balance of the funds will consist of a $370 million draw from its existing $1.04 billion five-year revolving credit facility. Toll Brothers also closed on a $500 million 364-day unsecured bank revolving credit facility, which it does not plan to draw on for this transaction. Between cash and untapped bank credit facilities, Toll Brothers still has approximately $1.5 billion of available liquidity to support current operations and future growth.

Toll Brothers previously announced that it plans to selectively sell approximately $500 million of land to return some expended capital and help manage its California holdings.


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