Toll Brothers to price $250 million 20-year exchangeables to yield 0.25%-0.75%, up 47.5%-52.5%

By Rebecca Melvin

New York, Sept. 4 - Toll Brothers Finance Corp., a wholly owned subsidiary of Toll Brothers Inc., plans to price $250 million of 20-year exchangeable notes after the market close Tuesday that were talked to yield 0.25% to 0.75% with a 47.5% to 52.5% initial conversion premium, according to a market source.

The Rule 144A deal has a $37.5 million over-allotment option.

Involved underwriters are Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBS Securities Inc., BMO Capital Markets Corp. and Goldman Sachs & Co.

The notes are non-callable until Sept. 15, 2017. There are puts Dec. 15, 2017, Sept. 15, 2022 and Sept. 15, 2027. There is contingent interest of 0.5% at a price trigger of 120%.

Horsham, Pa.-based Toll Brothers is a residential home builder, which will use proceeds for general corporate purposes.

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