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Loans Payable, Senior Notes, and Mortgage Company Loan Facility | 12 Months Ended
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Oct. 31, 2024
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, 2024 and 2023, loans payable consisted of the following (amounts in thousands):
|  | 2024 |  | 2023
Senior unsecured term loan |  | $ | 650,000 |  |  | $ | 650,000 |
Loans payable – other |  | 437,969 |  |  | 517,378 |
Deferred issuance costs |  | (2,152) |  |  | (3,154) |
|  | $ | 1,085,817 |  |  | $ | 1,164,224 |
Senior Unsecured Term Loan We are party to a $650.0 million senior unsecured term loan facility (the “Term Loan Facility”) with a syndicate of banks of which $487.5 million matures February 14, 2028, $101.6 million matures on November 1, 2025 and the remaining $60.9 million matures on November 1, 2026. There are no payments required before these stated maturity dates. Under the Term Loan Facility, we may select interest rates equal to (i) SOFR 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, 2024, the interest rate on the Term Loan Facility was 5.73% per annum. Toll Brothers, Inc. and substantially all of its 100%-owned home building subsidiaries are guarantors under the Term Loan Facility. The Term Loan Facility contains substantially the same financial covenants as the Revolving Credit Facility described below. In November 2020, we entered into five interest rate swap transactions to hedge $400.0 million of the Term Loan Facility through October 2025. The interest rate swaps effectively fix the interest cost on the $400.0 million at 0.369% plus the spread set forth in the pricing schedule in the Term Loan Facility, which was 0.90% as of October 31, 2024. These interest rate swaps were designated as cash flow hedges. Revolving Credit Facility At October 31, 2024, we had a $1.955 billion senior unsecured revolving credit facility (the “Revolving Credit Facility”) with a syndicate of banks that is scheduled to mature on February 14, 2028. The Revolving Credit Facility provides us with a committed borrowing capacity of $1.955 billion, which we have the ability to increase up to $3.00 billion with the consent of lenders. Under the Revolving Credit Facility, up to 100% of the commitment is available for letters of credit. Toll Brothers, Inc. and substantially all of its 100%-owned home building subsidiaries are guarantors of the borrower’s obligations under the Revolving Credit Facility. Both our Revolving Credit Facility and Term Loan Facility require us to maintain certain financial covenants, which include not exceeding a defined maximum leverage ratio and maintaining a minimum tangible net worth. In addition, our ability to repurchase our common stock and pay cash dividends is limited by these agreements. However, during fiscal 2024, these limitations did not meaningfully restrict the amount of cash dividends paid or stock repurchased. We were in compliance with all covenants and requirements as of October 31, 2024. At October 31, 2024, we had no outstanding borrowings under the Revolving Credit Facility and had outstanding letters of credit of $180.0 million. At October 31, 2024, the interest rate on outstanding borrowings under the Revolving Credit Facility would have been 6.03% per annum. Loans Payable – Other “Loans payable – other” primarily represent purchase money mortgages on properties we acquired that the seller had financed, project-level financing, and various revenue bonds that were issued by government entities on our behalf to finance community infrastructure and our manufacturing facilities. Information regarding our loans payable at October 31, 2024 and 2023, is included in the table below ($ amounts in thousands):
| 2024 |  | 2023
Aggregate loans payable at October 31 | $ | 437,969 |  |  | $ | 517,378 |
Weighted-average interest rate | 5.73 | % |  | 5.25 | %
Interest rate range | 1.00% - 9.00% |  | 0.38% - 9.00%
Loans secured by assets: |  |  |
Carrying value of loans secured by assets | $ | 437,256 |  |  | $ | 516,186 |
Carrying value of assets securing loans | $ | 1,326,440 |  |  | $ | 1,416,034 |
The contractual maturities of “Loans payable – other” as of October 31, 2024, ranged from one day to 28.9 years. Senior Notes At October 31, 2024 and 2023, senior notes consisted of the following (amounts in thousands):
| 2024 |  | 2023
4.875% Senior Notes due November 15, 2025 | $ | 350,000 |  |  | $ | 350,000 |
4.875% Senior Notes due March 15, 2027 | 450,000 |  |  | 450,000 |
4.35% Senior Notes due February 15, 2028 | 400,000 |  |  | 400,000 |
3.80% Senior Notes due November 1, 2029 | 400,000 |  |  | 400,000 |
Bond discounts, premiums, and deferred issuance costs - net | (2,898) |  |  | (3,815) |
| $ | 1,597,102 |  |  | $ | 1,596,185 |
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 Revolving 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. Each series of senior notes is 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 senior notes to be redeemed. In our second quarter of fiscal 2023, we redeemed all $400.0 million principal amount of 4.375% Senior Notes due April 15, 2023, at par, plus accrued interest. Mortgage Company Loan Facility During fiscal 2023 and until December 2023, our wholly owned mortgage subsidiary, Toll Brothers Mortgage Company ("TBMC"), was party to a mortgage warehousing facility that contained substantially the same terms as those described in the paragraph below. On December 5, 2023, TBMC executed a new Warehousing Agreement (“New Warehousing Agreement”) with a bank which provides for loan purchases up to $75.0 million, subject to certain sublimits. In addition, the New Warehousing Agreement, provides for an accordion feature under which TBMC may request that the aggregate commitments under the New Warehousing Agreement be increased to an amount up to $150.0 million for a short period of time. TBMC is also subject to an under usage fee based on outstanding balances, as defined in the New Warehousing Agreement. Prior to its scheduled expiration on December 3, 2024, the New Warehousing Agreement was amended to extend the expiration date to December 2, 2025. No other changes were made to the terms of the New Warehousing Agreement as a result of the amendment. The New Warehousing Agreement bears interest at SOFR plus 1.75% per annum (with a SOFR floor of 2.50%). At October 31, 2024, the interest rate on the New Warehousing Agreement was 6.59% per annum. At October 31, 2024 and 2023, there was $150.0 million and $100.1 million, respectively, outstanding under the agreements which are included in liabilities in our Consolidated Balance Sheets. At October 31, 2024 and 2023, amounts outstanding under the agreements were collateralized by $182.8 million and $104.7 million, respectively, of mortgage loans held for sale, which are included in assets in our Consolidated Balance Sheets. As of October 31, 2024, there were no aggregate outstanding purchase price limitations reducing the amount available to TBMC. 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. General As of October 31, 2024, the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands):
|  |  | Amount
2025 |  |  | $ | 350,496 |
2026 |  |  | $ | 591,199 |
2027 |  |  | $ | 554,131 |
2028 |  |  | $ | 897,988 |
2029 |  |  | $ | 409,820 |

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- 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/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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