S&P rates Toll Brothers notes BB+

Standard & Poor's said it assigned its BB+ issue-level rating and 3 recovery rating to Toll Brothers Finance Corp.'s proposed offering of $350 million of senior notes due 2025.

The 3 recovery rating indicates an expectation for meaningful (50% to 70%, at the upper end of the range) recovery in the event of a default.

The company intends to use proceeds for general corporate purposes, which may include repayment of debt.

The new notes will rank equally with Toll Brothers Finance's other senior unsecured obligations. The company's indirect parent company, Toll Brothers Inc., will guarantee the notes.

S&P said the BB+ corporate credit rating on Toll Brothers reflect its view of the companies' business risk as "satisfactory" and financial risk as "significant." The agency expects Toll Brothers, which has a leading market position in the U.S. luxury-housing segment, to maintain leverage at about 4 times EBITDA over the next 12 months.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.