Toll Brothers Floats New Stock Issue
Nov 7th 2013 11:35PM
Updated Nov 7th 2013 11:36PM
Toll Brothers is hoping to strengthen its capital foundation with a fresh offering of common stock. The company announced it is floating 6.25 million shares in an underwritten public flotation priced at $32.00 per share. Additionally, the issue's underwriters have been granted a 30-day purchase option for up to an additional 937,500 million shares.
Toll Brothers aims to use the net proceeds to help finance its just-announced acquisition of the luxury home building unit of California-based Shapell Industries. The price of that deal is roughly $1.6 billion in cash.
Citigroup, RBS, SunTrust Robinson Humphrey, and Deutsche Bank Securities are the joint book-running managers of the offering, which is expected to close "on or about" next Thursday.
At the moment, Toll Brothers has nearly 169 million shares outstanding, and its stock most recently closed at $32.68 per share.
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