Toll Brothers receives tenders for $216.9 million 6.875%, 5.95% notes

By Angela McDaniels

Tacoma, Wash., Oct. 14 - Toll Brothers, Inc. subsidiary Toll Brothers Finance Corp. received tenders for $114,032,000 principal amount of its $300 million of 6.875% senior notes due 2012 and for $102,872,000 principal amount of its $250 million of 5.95% senior notes due 2013, according to a company news release.

The company offered to purchase up to $200 million of notes in a tender offer that ended at midnight ET on Oct. 13. Because the offer is oversubscribed, notes will be accepted on a pro rata basis.

Specifically, Toll Brothers Finance will purchase $105,135,000 principal amount of 6.875% notes and $94,865,000 principal amount of 5.95% notes.

For each $1,000 principal amount, the company will pay $1,067.50 for the 6.875% notes and $1,032.50 for the 5.95% notes. In both cases, the payment includes a $30.00 early tender payment for those who tendered prior to 5 p.m. ET on Sept. 28.

Toll Brothers will also pay accrued interest up to but excluding the payment date, which was expected to be Oct. 14.

All notes purchased in the offer will be retired.

Toll Brothers Finance said that it will use part of the proceeds from an issue of new 6.75% senior notes due 2019 to finance the tender offer, which began Sept. 15.

JPMorgan (call collect 212 834-3424) and Bank of America Merrill Lynch (888 292-0070 or call collect 980 388-9217) were the dealer managers. D.F. King & Co., Inc. (212 493-6996) was the information agent.

Toll Brothers is a Horsham, Pa.-based builder of luxury homes.

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