XML 35 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Loans Payable, Senior Notes, and Mortgage Company Loan Facility | 12 Months Ended
--- | ---
Oct. 31, 2017
Debt Disclosure [Abstract] |
Loans Payable, Senior Notes, and Mortgage Company Warehouse Loan | Loans Payable, Senior Notes, and Mortgage Company Loan Facility Loans Payable At October 31, 2017 and 2016, loans payable consisted of the following (amounts in thousands):
|  | 2017 |  | 2016
Senior unsecured term loan |  | $ | 500,000 |  |  | $ | 500,000 |
Credit facility borrowings |  | — |  |  | 250,000 |
Loans payable – other |  | 139,116 |  |  | 122,809 |
Deferred issuance costs |  | (1,700 | ) |  | (1,730 | )
|  | $ | 637,416 |  |  | $ | 871,079 |
Senior Unsecured Term Loan We have a $500.0 million, five-year senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks. The Term Loan Facility, as amended, matures in August 2021. Under the Term Loan Facility, as amended, we may select interest rates equal to (i) London Interbank Offered Rate (“LIBOR”) plus an applicable margin, (ii) the base rate (as defined in the agreement) plus an applicable margin, or (iii) the federal funds/Euro rate (as defined in the agreement) plus an applicable margin, in each case, based on our leverage ratio. At October 31, 2017, the interest rate on the Term Loan Facility was 2.64% per annum. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the Credit Facility, as described below. Credit Facility We have a $1.295 billion, unsecured, five-year revolving credit facility (the “Credit Facility”) with a syndicate of banks. The commitments under the Credit Facility are scheduled to expire on May 19, 2021. Up to 50% of the commitment is available for letters of credit. The Credit Facility has an accordion feature under which we may, subject to certain conditions set forth in the agreement, increase the Credit Facility up to a maximum aggregate amount of $2.0 billion. We may select interest rates for the Credit Facility equal to (i) LIBOR plus an applicable margin or (ii) the lenders’ base rate plus an applicable margin, which in each case is based on our credit rating and leverage ratio. At October 31, 2017, the interest rate on outstanding borrowings under the Credit Facility would have been 2.74% per annum. We are obligated to pay an undrawn commitment fee that is based on the average daily unused amount of the Aggregate Credit Commitment and our credit ratings and leverage ratio. Any proceeds from borrowings under the Credit Facility may be used for general corporate purposes. We and substantially all of our 100%-owned home building subsidiaries are guarantors under the Credit Facility. Under the terms of the Credit Facility, our maximum leverage ratio (as defined in the credit agreement) may not exceed 1.75 to 1.00 and we are required to maintain a minimum tangible net worth (as defined in the credit agreement) of no less than approximately $2.63 billion. Under the terms of the Credit Facility, at October 31, 2017, our leverage ratio was approximately 0.58 to 1.00 and our tangible net worth was approximately $4.49 billion. Based upon the minimum tangible net worth requirement, our ability to repurchase our common stock was limited to approximately $2.29 billion as of October 31, 2017. At October 31, 2017, we had no outstanding borrowings under the Credit Facility and had outstanding letters of credit of approximately $140.1 million. Subsequent to October 31, 2017, we borrowed $150.0 million under the Credit Facility. Loans Payable – Other “Loans payable – other” primarily represent purchase money mortgages on properties we acquired that the seller had financed and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. Information regarding our loans payable at October 31, 2017 and 2016, is included in the table below ($ amounts in thousands):
| 2017 |  | 2016
Aggregate loans payable at October 31 | $ | 139,116 |  |  | $ | 122,809 |
Weighted-average interest rate | 4.11 | % |  | 3.99 | %
Interest rate range | 1.11% - 7.87% |  |  | 0.78% - 7.87% |
Loans secured by assets |  |  |
Carrying value of loans secured by assets | $ | 139,116 |  |  | $ | 122,570 |
Carrying value of assets securing loans | $ | 483,910 |  |  | $ | 461,162 |
The contractual maturities of “Loans payable – other” as of October 31, 2017, ranged from one month to 29 years. Senior Notes At October 31, 2017 and 2016, senior notes consisted of the following (amounts in thousands):
| 2017 |  | 2016
8.91% Senior Notes due October 15, 2017 | $ | — |  |  | $ | 400,000 |
4.00% Senior Notes due December 31, 2018 | 350,000 |  |  | 350,000 |
6.75% Senior Notes due November 1, 2019 | 250,000 |  |  | 250,000 |
5.875% Senior Notes due February 15, 2022 | 419,876 |  |  | 419,876 |
4.375% Senior Notes due April 15, 2023 | 400,000 |  |  | 400,000 |
5.625% Senior Notes due January 15, 2024 | 250,000 |  |  | 250,000 |
4.875% Senior Notes due November 15, 2025 | 350,000 |  |  | 350,000 |
4.875% Senior Notes due March 15, 2027 | 450,000 |  |  | — |
0.5% Exchangeable Senior Notes due September 15, 2032 | — |  |  | 287,500 |
Bond discounts, premiums, and deferred issuance costs, net | (7,413 | ) |  | (13,004 | )
| $ | 2,462,463 |  |  | $ | 2,694,372 |
The senior notes are the unsecured obligations of Toll Brothers Finance Corp., our 100%-owned subsidiary. The payment of principal and interest is fully and unconditionally guaranteed, jointly and severally, by us and substantially all of our 100%-owned home building subsidiaries (together with Toll Brothers Finance Corp., the “Senior Note Parties”). The senior notes rank equally in right of payment with all the Senior Note Parties’ existing and future unsecured senior indebtedness, including the Credit Facility and the Term Loan Facility. The senior notes are structurally subordinated to the prior claims of creditors, including trade creditors, of our subsidiaries that are not guarantors of the senior notes. The senior notes, other than our previously outstanding 0.5% Exchangeable Senior Notes due 2032 (“0.5% Exchangeable Senior Notes”), are redeemable in whole or in part at any time at our option, at prices that vary based upon the then-current rates of interest and the remaining original term of the notes. On September 15, 2017, we redeemed all $287.5 million aggregate principal amount of the 0.5% Exchangeable Senior Notes for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest. The 0.5% Exchangeable Senior Notes were exchangeable into shares of our 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 common stock. If all of the 0.5% Exchangeable Senior Notes were exchanged, we would have issued approximately 5.9 million shares of our common stock. Shares issuable upon conversion of the 0.5% Exchangeable Senior Notes are included in the calculation of diluted earnings per share. In October 2017, we repaid, at maturity, the $400.0 million of then-outstanding principal amount of 8.91% Senior Notes due October 15, 2017. In March 2017, we issued $300.0 million aggregate principal amount of 4.875% Senior Notes due 2027 (“4.875% Senior Notes due 2027”). The Company received $297.2 million of net proceeds from the issuance of these senior notes. In June 2017, we issued an additional $150.0 million principal amount of the 4.875% Senior Notes due 2027. These additional notes were issued at a premium of 103.655% of principal plus accrued interest. We received $156.4 million of net proceeds from the issuance of these additional notes. In October 2015, we issued $350.0 million aggregate principal amount of 4.875% Senior Notes due 2025 (the “4.875% Senior Notes due 2025”) at par. We received $347.7 million of net proceeds from this issuance of 4.875% Senior Notes due 2025. In May 2015, we repaid, at maturity, the $300.0 million of then-outstanding principal amount of 5.15% Senior Notes due May 15, 2015. Mortgage Company Loan Facility In October 2016, TBI Mortgage® Company (“TBI Mortgage”), our wholly owned mortgage subsidiary, entered into a Mortgage Warehousing Agreement (“Warehousing Agreement”) with a syndicate of banks. The purpose of the Warehousing Agreement is to finance the origination of mortgage loans by TBI Mortgage, and the Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” The Warehousing Agreement, as amended on October 27, 2017, provides for loan purchases up to $100 million, subject to certain sublimits. In addition, the Warehousing Agreement provides for an accordion feature under which TBI Mortgage may request that the aggregate commitments under the Warehousing Agreement be increased to an amount up to $150 million for a short period of time. The Warehousing Agreement, as amended, expires on April 25, 2018, and borrowings thereunder bear interest at LIBOR plus 2.00% per annum. At October 31, 2017, the interest rate on the Warehousing Agreement was 3.24% per annum. In addition, we are subject to an under usage fee based on outstanding balances, as defined in the Warehousing Agreement. Borrowings under this facility are included in the fiscal 2018 maturities. Prior to entering into the Warehousing Agreement, TBI Mortgage had a Master Repurchase Agreement, as amended (the “Repurchase Agreement”) with a bank, which provided for loan purchases up to $85 million subject to certain sublimits. In addition, the Repurchase Agreement provided for an accordion feature under which TBI Mortgage could request that the aggregate commitments under the Repurchase Agreement be increased to an amount up to $125 million for a short period of time. The borrowings under the Repurchase Agreement bore interest at LIBOR plus 2.00% per annum, with a minimum rate of 2.00%. The Repurchase Agreement was terminated when we entered into the Warehousing Agreement. At October 31, 2017 and 2016, there were $120.1 million and $210.0 million, respectively, outstanding under the Warehousing Agreement, which are included in liabilities in our Consolidated Balance Sheets. At October 31, 2017 and 2016, amounts outstanding under the agreement were collateralized by $125.7 million and $231.4 million, respectively, of mortgage loans held for sale, which are included in assets in our Consolidated Balance Sheets. As of October 31, 2017, there were no aggregate outstanding purchase price limitations reducing the amount available to TBI Mortgage. There are several restrictions on purchased loans under the agreement, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreements. Subsequent event In December 2017, TBI Mortgage amended the Warehousing Agreement. As amended, the Warehousing Agreement provides for loan purchases up to $75 million, expires on December 7, 2018, and borrowings thereunder bear interest at LIBOR plus 1.90% per annum. General As of October 31, 2017, the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands):
| Amount
2018 | $ | 181,361 |
2019 | $ | 377,188 |
2020 | $ | 255,298 |
2021 | $ | 501,603 |
2022 | $ | 421,520 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration