HORSHAM, Pa., Sept. 5, 2012 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL) (the "Company"), today announced that its wholly-owned subsidiary Toll Brothers Finance Corp. ("Toll Brothers Finance") priced its private offering of $250 million aggregate principal amount of 0.50% Exchangeable Senior Notes due 2032. Toll Brothers Finance has granted the initial purchasers an option to purchase up to an additional $37.5 million aggregate principal amount of notes within 12 days of the initial issuance of the notes. The notes are being offered and sold to qualified institutional buyers as defined under Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The closing of the offering is expected to occur on September 11, 2012, subject to customary closing conditions.
The notes will be exchangeable into shares of the Company's common stock at an exchange rate of 20.3749 shares per $1,000 principal amount of notes, corresponding to an initial exchange price of approximately $49.08 per share of the Company's common stock, which is equivalent to a 50.0% exchange premium based on the closing price of $32.72 per share of the Company's common stock on the New York Stock Exchange on September 4, 2012.
Holders of the notes will have the right to require Toll Brothers Finance to repurchase their notes for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on each of December 15, 2017, September 15, 2022 and September 15, 2027. Toll Brothers Finance will have the right to redeem the notes on or after September 15, 2017 for cash equal to 100% of their principal amount, plus accrued but unpaid interest. The notes will be guaranteed on a senior unsecured basis by the Company and all of the Company's subsidiaries that are guarantors under First Huntingdon Finance Corp.'s revolving credit facility.
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