Bloomberg News

Toll Brothers Unit Raises $300 Million With 10-Year Debt Sale

April 03, 2013

A unit of Toll Brothers Inc. (TOL:US), the largest U.S. luxury-home builder, sold $300 million of 10-year debt.

Toll Brothers Finance Corp.’s 4.375 percent notes due April 2023 yield 256 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. Proceeds will be used for general corporate purposes, including paying down debt, the Horsham, Pennsylvania-based property developer said today in a regulatory filing.

The company sold 10-year notes in January 2012, issuing 5.875 percent debentures to yield 407.6 basis points more than benchmarks, Bloomberg data show. The bonds traded at 111.5 cents on the dollar to yield 4.3 percent on March 26, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Citigroup Inc., Deutsche Bank AG, Royal Bank of Scotland Group Plc and SunTrust Robinson Humphrey Inc. managed today’s sale, Bloomberg data show. The bonds are rated Ba1 by Moody’s Investors Service, BB+ at Standard & Poor’s and BBB- by Fitch Ratings, the data show.

The homebuilding industry is benefiting from a recovering bond market as the Federal Reserve continues asset purchases aimed at keeping interest rates low to boost economic growth. The rate for a 30-year fixed mortgage was 3.57 percent on March 28, down from an average of 6.2 percent from 2005 to 2007, according to Freddie Mac data compiled by Bloomberg.

To contact the reporter on this story: Victoria Stilwell in New York at vstilwell1@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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Companies Mentioned

  • TOL
    (Toll Brothers Inc)
    • $36.4 USD
    • 0.09
    • 0.25%
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