Toll Brothers, Inc., Horsham, Pennsylvania (NYSE:TOL) on Thursday said that it had entered into a five-year $1.905 billion senior unsecured revolving credit facility to replace the company's existing $1.295 billion revolving credit facility, which was scheduled to mature in May 2021.
The facility, which matures in November 2024 and includes 24 banks, has an accordion feature under which the facility can increase to a maximum of $2.5 billion, subject to certain conditions. The company also extended the maturity of its existing $800 million senior unsecured term loan facility from November 2023 to November 2024. In addition, on October 31, Toll Brothers redeemed its $250 million of 6.750% senior notes due November 1, 2019 using cash on hand.
Douglas C. Yearley, Jr., Toll Brothers’ chairman and chief executive officer, stated: “As we continue to position the company for growth, the expansion and extension of our revolving credit facility provides us with additional financial flexibility and increases the long-term stability of our balance sheet. The global group of banks in our credit facility and the attractive terms of this transaction reflect the strength of our Company. We appreciate the continued support of our existing banks as we welcome six new banks into our facility.”
