New to Zacks? Get started here.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click
OK. If you do not, click Cancel.
Back to top
Toll Brothers Prices Senior Notes
TOL KBH DHI
Toll Brothers, Inc., ( TOL - Analyst Report) , a leading homebuilder in the US, recently announced the pricing of senior notes worth $300 million due Apr 15, 2023. The notes are issued by Toll Brothers Finance Corp., a wholly-owned subsidiary of Toll Brothers. The notes carry a coupon of 4.375%.
The issuance of the senior notes will close on Apr 10, 2013. The senior notes will pay interest on Apr 15 and Oct 15 during its tenure. The first interest is expected to be paid on Oct 15, 2013.
Toll Brothers intends to use the net proceeds to meet general corporate expenses, which may include the repurchase of its outstanding debt.
The increasing momentum of housing market recovery, backed by lower home prices and moderating interest rates is luring buyers to new homes. Demand for new homes is increasing in many of the U.S markets. As a result, most of the homebuilding companies are aggressively investing in land and building new homes in order to meet the increasing demand of the housing market.
Homebuilders like Toll Brothers with significant land positions, broad geographic and product diversity and better capital positions are expected to benefit the most as market conditions recover. Toll Brothers expects to end fiscal 2013 with 225 to 255 selling communities. The community count is expected to grow thereafter in 2014. The recent senior notes issue will improve the company’s liquidity position and help it achieve its community count target.
Toll Brothers currently carries a Zacks Rank #3 (Hold).
Other stocks in the homebuilding sector that are performing well and deserve a mention include D. R. Horton Inc. ( DHI - Analyst Report) and Ryland Group Inc. , both carrying a Zacks Rank #1 (Strong Buy) and KB Home ( KBH - Analyst Report) carrying a Zacks Rank #2 (Buy)