Toll Brothers obtains five-year $1.22 billion five-year revolver

By Wendy Van Sickle

Columbus, Ohio, May 24 – Toll Brothers, Inc. and wholly owned subsidiary First Huntingdon Finance Corp. entered into a $1,215,000,000 unsecured five-year revolving credit agreement on May 19, according to an 8-K filing with the Securities and Exchange Commission.

Half of the aggregate commitment will be available for letters of credit, and there is an accordion feature allowing the company to request to expand the commitment up to a total of $2 billion.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Bank, Ltd., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities LLC acted as joint lead arrangers and joint bookrunners.

Citibank, NA is the administrative agent. Deutsche Bank Securities Inc. Mizuho Bank, Ltd. and SunTrust Bank acted as syndication agents and PNC Bank, NA and Wells Fargo Bank, NA as documentation agents.

Interest is Libor plus a margin of 125 basis points to 200 bps, and the undrawn fee ranges from 20 bps to 35 bps, both depending on leverage ratio.

Toll Brothers must adhere to a maximum leverage ratio of 1.75 times and maintain a minimum tangible net worth of $2.65 billion.

Proceeds may be used for general corporate purposes.

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

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