Loans Payable, Senior Notes, and Mortgage Company Loan Facility

12 Months Ended

Oct. 31, 2025

Loans Payable, Senior Notes, and Mortgage Company Loan Facility

Loans Payable

At October 31, 2025 and 2024, loans payable consisted of the following (amounts in thousands):


	2025		2024
Senior unsecured term loan	$	650,000	$	650,000

Loans payable – other	249,087		437,969
Deferred issuance costs	(2,699)		(2,152)
	$	896,388	$	1,085,817

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. On February 7, 2025, we entered into an agreement to amend the Term Loan Facility to extend the maturity date of all $650.0 million of outstanding term loans to February 7, 2030. No principal payments are required before the stated maturity date. Under the Term Loan Facility, we may select interest rates equal to (i) the Secured Overnight Financing Rate (“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, 2025, the interest rate on the Term Loan Facility was 5.14% 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. The interest rate swaps effectively fixed 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, 2025. These interest rate swaps were designated as cash flow hedges and expired on October 31, 2025.

Revolving Credit Facility

We are party to a $2.35 billion senior unsecured revolving credit facility (the “Revolving Credit Facility”) with a syndicate of banks. On February 7, 2025, we increased the total amount of revolving loans and commitments available under the Revolving Credit Facility from $1.96 billion to $2.35 billion and extended the maturity date to February 7, 2030. We have the ability to

increase the Revolving Credit Facility up to $3.00 billion with the consent of lenders. Under the Revolving Credit Facility, up to 50% 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 2025, these limitations did not meaningfully restrict our ability to pay cash dividends or repurchase stock. We were in compliance with all covenants and requirements as of October 31, 2025.

At October 31, 2025, we had no outstanding borrowings under the Revolving Credit Facility and had approximately $155.9 million of outstanding letters of credit that were issued under the Revolving Credit Facility. At October 31, 2025, the interest rate on outstanding borrowings under the Revolving Credit Facility, which is a variable rate, would have been 5.44% 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, 2025 and 2024, is included in the table below ($ amounts in thousands):


	2025			2024
Aggregate loans payable at October 31	$	249,087		$	437,969
Weighted-average interest rate	4.87		%	5.73		%
Interest rate range	1.00% - 9.00%			1.00% - 9.00%
Loans secured by assets:
Carrying value of loans secured by assets	$	249,087		$	437,256
Carrying value of assets securing loans	$	902,593		$	1,326,440

The contractual maturities of “Loans payable – other” as of October 31, 2025, ranged from three days to 30.9 years.

Senior Notes

At October 31, 2025 and 2024, senior notes consisted of the following (amounts in thousands):


	2025		2024
4.875% Senior Notes due November 15, 2025	$	—	$	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
5.60% Senior Notes due June 15, 2035	500,000		—
Bond discounts, premiums, and deferred issuance costs - net	(8,475)		(2,898)
	$	1,741,525	$	1,597,102

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 June 2025, we issued $500.0 million principal amount of 5.600% Senior Notes due 2035. We received $494.9 million of net

proceeds from the issuance of these senior notes. On July 15, 2025, we redeemed, prior to maturity, the $350.0 million of then-outstanding principal amount of 4.875% Senior Notes due November 15, 2025, at par, plus accrued interest and a nominal

prepayment fee.

Mortgage Company Loan Facility

Our wholly owned mortgage subsidiary, Toll Brothers Mortgage Company ("TBMC"), is a party to a mortgage warehousing facility (the “Warehousing Agreement”) with a bank that provides for loan purchases up to $75.0 million, subject to certain sublimits. The Warehousing Agreement provides for an accordion feature under which TBMC may request that the aggregate commitments under the Warehousing Agreement be increased to an amount up to $150.0 million for a short period of time. The Warehousing Agreement is accounted for as a secured borrowing under ASC 860, “Transfers and Servicing.” TBMC is also subject to an under usage fee based on outstanding balances, as defined in the Warehousing Agreement. Prior to its scheduled expiration on December 2, 2025, the Warehousing Agreement was amended to extend the expiration date to November 25, 2026. No other changes were made to the terms of the Warehousing Agreement as a result of the amendment. The Warehousing Agreement bears interest at SOFR plus 1.75% per annum (with a SOFR floor of 2.50%). At October 31, 2025, the interest rate on the Warehousing Agreement was 5.88% per annum.

At October 31, 2025 and 2024, there was $150.0 million outstanding under the Warehousing Agreement that are included as liabilities in our Consolidated Balance Sheets. At October 31, 2025 and 2024, amounts outstanding under Warehousing Agreement were collateralized by $194.1 million and $182.8 million, respectively, of mortgage loans held for sale, which were included in assets in our Consolidated Balance Sheets. As of October 31, 2025, there were no aggregate outstanding purchase price limitations reducing the amount available to TBMC. There are several restrictions on purchased loans under the Warehousing 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, 2025, the annual aggregate maturities of our loans and notes during each of the next five fiscal years are as follows (amounts in thousands):


	Amount
2026 (1)	$	257,896
2027	$	507,878
2028	$	411,244
2029	$	13,395
2030	$	1,061,015

(1) Excluded from the table above is $114.5 million of loans payable that have been classified within “Liabilities related to assets held for sale” on our Consolidated Balance Sheet as of October 31, 2025 which has a schedule maturity date in fiscal 2026. This debt was satisfied in December 2025 by Kennedy Wilson. See Note 1, “Significant Accounting Policies - Disposition” for additional information.