Toll Brothers entered into a five-year $1.905 billion 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 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.
“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,” said Douglas C. Yearley, Jr., Toll Brothers’ chairman and chief executive officer.
Citibank, BofA Securities, Goldman Sachs Bank, Mizuho Bank, PNC Capital Market, Sumitomo Mitsui Banking, SunTrust Robinson Humphrey, and Wells Fargo Securities acted as joint lead arrangers and joint bookrunners for the new revolving bank facility with Citibank as administrative agent; Bank of America, Goldman Sachs Bank USA, Mizuho Bank, PNC Bank, Sumitomo Mitsui Banking, SunTrust Bank and Wells Fargo Bank as syndication agents; Capital One and U.S. Bank as documentation agents; and Citibank, Bank of America, Goldman Sachs Bank USA, Mizuho Bank, PNC Bank, Sumitomo Mitsui, SunTrust Bank, Wells Fargo Bank, Capital One, U.S. Bank, Citizens Bank, Fifth Third Bank, Regions Bank, Bank of the West, BMO Harris Bank, Branching Banking and Trust, CIBC Bank USA, Comerica Bank, TD Bank, The Bank of New York Mellon, Flagstar Bank, Texas Capital Bank, People’s United Bank, and Zions Bancorporation dba California Bank & Trust as lenders.
SunTrust Robinson Humphrey acted as lead arranger and sole bookrunner for the term loan with Sumitomo Mitsui and U.S. Bank as syndication agents; Capital One and Wells Fargo Bank as documentation agents; and SunTrust Bank, Sumitomo Mitsui, Wells Fargo Bank, U.S. Bank, Capital One, The Bank of New York Mellon, Fifth Third Bank, PNC Bank, Comerica Bank, People’s United Bank, TD Bank, and Texas Capital Bank as lenders.
Toll Brothers is a builder of luxury homes.