Toll Brothers, Inc.
) announced the pricing of its public offering of 6.3 million
shares of its common stock of 1 cent per share par value at a
price of $32.00 per share.
), Deutsche Bank Securities of
Deutsche Bank AG
), SunTrust Robinson Humphrey, and RBS are acting as lead
book-running managers for the offering.
The offeringis expected to close on Nov 14, 2013 and is
subject to certain customary closing conditions. The latest
capital raising initiative will help the company reduce the total
debt burden under credit facilities to some extent. Further, the
proceeds can be used for financing its proposed $1.6 billion
acquisition of Shapell Industries, Inc.
On Nov 6, Toll announced a definitive agreement to purchase
the homebuilding business of Calif.-based home building company -
Shapell Industries. The transaction is expected to boost its
presence in the upscale Californian housing market.
Toll Brothers intends to complete the acquisition by 2014-end.
The transaction is expected to be accretive to Toll Brothers'
earnings in the first year itself.
As of Jul 31, 2013, Toll Brothers had $97.7 million of
borrowings outstanding, $2.4 billion of senior notes payable,
$65.6 million of mortgage loans and unfunded commitments of
Toll Brothers is optimistic about the growing momentum in the
housing market and believes housing demand will continue to grow
due to supply shortages. However, the housing momentum has slowed
down recently due to low home purchases resulting from higher
home prices, a rapid rise in mortgage rates and economic
Other Stocks to Consider
Toll Brothers sports a Zacks Rank #3 (Hold). Another stock in
the sector that is performing well and deserves a mention is
M/I Homes, Inc.
) carrying a Zacks Rank #1 (Strong Buy).
CITIGROUP INC (C): Free Stock Analysis Report
DEUTSCHE BK AG (DB): Free Stock Analysis
M/I HOMES INC (MHO): Free Stock Analysis
TOLL BROTHERS (TOL): Free Stock Analysis
To read this article on Zacks.com click here.