Toll Brothers, Inc.
), a leading homebuilder in the US, recently announced the
pricing of senior notes worth $100 million due Apr 15, 2023. The
notes were issued by Toll Brothers Finance Corp., a wholly-owned
subsidiary of Toll Brothers. The notes carry a coupon of 4.375%.
The issuance will close on May 13, 2013. The senior notes will
pay interest semi-annually on Apr 15 and Oct 15, starting Oct 15,
2013. The company previously issued senior notes worth $300
million due Apr 15, 2023 on Apr 3, 2013.
Toll Brothers intends to use the net proceeds to meet general
corporate expenses, which may include the repurchase of its
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.
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.
Ryland Group Inc.
MDC Holdings Inc.
). While D. R. Horton and Ryland Group carry a Zacks Rank #1
(Strong Buy), MDC holds a Zacks Rank #2 (Buy).
D R HORTON INC (DHI): Free Stock Analysis
MDC HLDGS (MDC): Free Stock Analysis Report
RYLAND GRP INC (RYL): Free Stock Analysis
TOLL BROTHERS (TOL): Free Stock Analysis
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