HOUSTON, Aug. 10, 2015 /PRNewswire/ -- Service Corporation
International (NYSE: SCI) (the "Company") announced today that it
has priced an underwritten public offering of $300 million of its 5.375% Senior Notes
due 2024 (the "Notes") in a reopening of its existing series
of such Notes. The price to the purchasers was 1.0375% of the
principal amount of the Notes representing a yield-to-worst of
4.719%. The Company expects to close the sale of the notes on
August 18, 2015, subject to the
satisfaction of customary closing conditions.
The Notes form a part of the series of the Company's outstanding
5.375% Senior Notes due 2024 and have the same terms as the
existing notes of this series issued by the Company. The Notes will
have the same CUSIP number as the existing notes and will trade
interchangeably with the existing notes immediately upon
settlement. The Notes and the existing notes previously issued by
the Company will constitute a single series under the indenture for
all purposes. Upon issuance of the Notes, the aggregate principal
amount outstanding of the Company's 5.375% Senior Notes due 2024
will be $850 million.
The offering is being made under the Company's existing shelf
registration statement previously filed with the Securities and
Exchange Commission (the "SEC"). The Company will use the net
proceeds from this offering to redeem all of its outstanding 6.750%
Senior Notes due 2016 and to repay approximately $88 million of outstanding borrowings under its
revolving credit facility.
The Company also announced today that it will
be issuing a notice for the redemption of approximately
$197 million aggregate principal
amount of its 6.750% Senior Notes due 2016 as described above
pursuant to the terms of the indenture. The Bank of New York Mellon
Trust Company, N.A., acting as
Trustee, will send notices to all holders of the
6.750% Senior Notes due 2016 on August 11, 2015. The
Trustee is the redemption agent/paying agent and may be reached at
Corporate Trust, 601 Travis, 16th Floor, Houston, Texas 77002.
BofA Merrill Lynch is acting as the lead joint book-running
manager for the offering. The offering may be made only by means of
a prospectus supplement and accompanying base prospectus. The
prospectus supplement will be filed with the SEC and may be found
on its website at www.sec.gov. Copies of the prospectus supplement
relating to the public offering may be obtained from:
BofA Merrill Lynch
222 Broadway
New York, NY 10038
Attention: Prospectus Department
Telephone: (800) 294-1322
Email: dg.prospectus_requests@baml.com
This press release does not constitute an offer to sell nor the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful. The notes will be offered only by means of
a prospectus supplement and accompanying base prospectus. This
press release does not constitute a notice of redemption with
respect to the notes being redeemed.
Cautionary Statement on Forward-Looking Statements
The statements in this press release that are not historical
facts are forward-looking statements made in reliance on the "safe
harbor" protections provided under the Private Securities
Litigation Reform Act of 1995. These statements may be accompanied
by words such as "believe," "estimate," "project," "expect,"
"anticipate" or "predict" that convey the uncertainty of future
events or outcomes. These statements are based on assumptions that
we believe are reasonable; however, many important factors could
cause our actual results in the future to differ materially from
the forward-looking statements made herein and in any other
documents or oral presentations made by us or on our behalf.
Important factors which could cause actual results to differ
materially from those in forward-looking statements include, among
others, unfavorable conditions in the financing markets and our
ability to successfully complete the proposed offering on favorable
terms.
For further information on these and other risks and
uncertainties, see our SEC filings, including our 2014 Annual
Report on Form 10-K. Copies of this document as well as other SEC
filings can be obtained from our website at www.sci-corp.com. We
assume no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking
statements made by us, whether as a result of new information,
future events or otherwise.
About Service Corporation International
Service Corporation International, headquartered in Houston, Texas, is North America's leading provider of deathcare
products and services. As of June 30,
2015, the Company operated 1,550 funeral service locations
and 467 cemeteries (including 262 combination locations) in
North America, which are
geographically diversified across 45 states, eight Canadian
provinces, the District of
Columbia and Puerto Rico.
Through its business, the Company markets the Dignity
Memorial® brand, which offers assurance of quality,
value, caring service and exceptional customer satisfaction. For
more information about Service Corporation, please visit
www.sci-corp.com. The information contained on, or that may be
accessed through, our website is not incorporated by reference
into, and is not a part of, this press release.
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SOURCE Service Corporation International