New Issue: Toll Brothers prices $350 million 10-year bullet at par to yield 4 7/8%

By Paul A. Harris

Portland, Ore., Oct. 27 – Toll Brothers Finance Corp. launched and priced a $350 million issue of 10-year senior bullet notes (Ba1/BB+/BBB-) at par to yield 4 7/8% on Tuesday, according to market sources.

The yield printed at the tight end of the 4 7/8% to 5% yield talk and well below initial guidance in the low 5% context.

The quick-to-market deal was transacted on the investment-grade desk, sources said.

Citigroup Global Markets, Deutsche Bank Securities Inc., Mizuho Securities and SunTrust Robinson Humphrey were joint bookrunners for the public offer.

Proceeds will be used for general corporate purposes.

Toll Brothers Finance is a subsidiary of Toll Brothers, Inc., a Horsham, Pa.-based luxury residential home builder.

Issuer:	Toll Brothers Finance Corp.
Amount:	$350 million
Maturity:	Nov. 15, 2025
Securities:	Senior notes
Bookrunners:	Citigroup Global Markets, Deutsche Bank Securities Inc., Mizuho Securities, SunTrust Robinson Humphrey
Lead manager:	PNC Capital Markets LLC
Co-managers:	Capital One Securities, Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, Comerica Securities, Inc., Fifth Third Securities, Inc., Regions Securities LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC
Coupon:	4 7/8%
Price:	Par
Yield:	4 7/8%
Spread:	284.5 bps
Call:	Make-whole call at Treasuries plus 50 bps until Aug. 25, 2015, then callable at par
Trade date:	Oct. 27
Settlement date:	Oct. 30
Ratings:	Moody’s: Ba1
	Standard & Poor’s: BB+
	Fitch BBB-
Distribution:	SEC registered
Price talk:	4 7/8% to 5%
Marketing:	Quick to market

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