Carriage Services Announces Closing of Senior Notes Offering and Entry into Senior Secured Revolving Credit Facility
May 31 2018 - 11:11AM
Carriage Services, Inc. (NYSE:CSV) (“Carriage Services” or the
“Company”) today announced that it closed its private offering of
$325 million aggregate principal amount of 6.625% senior notes due
2026 (the “notes”).
The Company used a portion of the net proceeds from the sale of
the notes to repay its existing indebtedness under its former
secured credit facility. The Company intends to use the remainder
of the net proceeds for general corporate purposes, including
acquisitions.
The notes are unsecured, senior obligations of the Company, and
interest is payable semi-annually in arrears. The notes are fully
and unconditionally guaranteed, on a senior unsecured basis,
jointly and severally by each of the Company’s subsidiaries that is
a borrower, or guarantees indebtedness, under the Company’s new
credit facility.
In connection with the closing of the notes offering, the
Company also entered into a new senior secured revolving credit
facility with commitments of $150 million in order to provide
ongoing working capital and for general corporate purposes. The new
facility is undrawn at closing and has $148 million of availability
after giving effect to the $2.0 million of letters of credit
outstanding.
The notes were offered in a private offering only to persons who
are reasonably believed to be qualified institutional buyers
pursuant to Rule 144A and to certain persons outside of the United
States pursuant to Regulation S, each under the Securities Act of
1933, as amended (the “Act”). Neither the notes nor the related
guarantees have been, nor will be, registered under the Act or the
securities laws of any other jurisdiction and may not be offered or
sold in the United States absent registration or an applicable
exemption from such registration requirements.
This news release shall not constitute
an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any offer, solicitation or sale of
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Carriage Services
Carriage Services is a leading provider of
deathcare services and merchandise in the United States. Carriage
operates 178 funeral homes in 29 states and 32 cemeteries in 11
states.
Certain statements made herein or elsewhere by,
or on behalf of, the Company that are not historical facts are
intended to be forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
statements are based on assumptions that the Company believes are
reasonable; however, many important factors, as discussed under
"Forward-Looking Statements and Cautionary Statements" in the
Company's Annual Report on Form 10-K for the year ended December
31, 2017, could cause the Company's results in the future to differ
materially from the forward-looking statements made herein and in
any other documents or oral presentations made by, or on behalf of,
the Company. The Company assumes no obligation to update or
publicly release any revisions to forward-looking statements made
herein or any other forward-looking statements made by, or on
behalf of, the Company. A copy of the Company's Annual Report on
Form 10-K, and other information about the Company and news
releases, are available at http://www.carriageservices.com.
Source: Carriage Services, Inc.
For more information, please contact Viki Blinderman at 713-332-8568 or Ben Brink at 713-332-8441 or email InvestorRelations@carriageservices.com
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