Toll Brothers (NYSE:TOL), Horsham, Pa., Tuesday evening announced an offering of $250 million in new 6.75% senior notes due in 2019 and a cash tender offer for up to $150 million in aggregate principal amount of its 6.875% senior notes due 2012 and 5.95% senior notes due 2013.
The company said proceeds would be used "for general corporate purposes, which may include the repayment or repurchase of certain outstanding indebtedness, and to finance the cash tender offer."
The offering is underwritten by BofA Merrill Lynch, J.P. Morgan and Citi as joint book-running managers.
Fitch Ratings early Wednesday put an investment-grade "BBB-" on the new notes and reiterated its outlook rating on the company's debt as "stable."
J.P. Morgan and BofA Merrill Lynch will serve as dealer managers for the tender offer and D.F. King & Co., Inc. will act as the depositary and information agent for the tender offer. The total principal amount of the company's 6.875% senior notes due 2012 and 5.95% senior notes due 2013 is $550 million, $300 million of the former and $250 million of the latter.
Holders of the 2012 notes will receive $1,067.50 for each $1,000 of principal; the 2013 notes will pay $1,032.50.
The tender offer is scheduled to expire at 12:00 midnight, New York City time, on October 13, unless extended or earlier terminated. Holders of notes must tender and not withdraw their notes on or before the early tender date, which is 5:00 p.m., New York City time, on September 28.
Toll shares were up 52 cents (2.4%) at $22.16 in late-morning trading Wednesday.