Did you think you would see a home builder file an open shelf registration statement to raise cash in the current market or in the state of housing and the economy today? Toll Brothers Inc. (NYSE: TOL) has just filed a shelf statement at the SEC which will allow the luxury home builder to sell any combination of common stock, preferred stock, warrants, or debt in the parent company or in any of its subsidiaries.
The company did not specify any capital amounts that it intends toraise, nor did it state which brokerage firms would be underwriters forthe offering.
If the company can raise cash in this environment, we’d probably be onrecord saying how amazing it is that the home builder was able to raisecash. We’d then expect others to follow suit.
Shares are up over 5% at $19.95, and the money-losing home builder has a current market cap of almost $3.2 billion.
Jon C. Ogg
October 29, 2008