Toll Brothers Floats New Stock Issue

By Eric Volkman – Nov 7, 2013 at 11:35PM

NYSE: TOL

Toll Brothers

Market Cap

$12B

Today's Change

(3.86%) $4.39

Current Price

$118.20

Price as of April 23, 2024, 11:55 a.m. ET

The company will use the monies to help fund its purchase of the luxury home building unit of Shapell Industries.

Toll Brothers (TOL 3.86%) 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.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of Citigroup. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.