StoneMor Inc. Announces Proposed Private Offering of Senior Secured Notes
April 20 2021 - 7:41AM
StoneMor Inc. (NYSE: STON) (“StoneMor” or the
“Company”), a leading owner and operator of cemeteries and
funeral homes, announced today that its intention to offer $400
million aggregate principal amount of its senior secured notes due
2029 (the "Notes") in a private offering exempt from the
registration requirements of the Securities Act of 1933, as amended
(the "Securities Act"), subject to market and other conditions (the
"Offering"). The Notes will be senior secured obligations of the
Company and will be guaranteed by certain of the Company’s domestic
subsidiaries and by any foreign subsidiary that guarantees any
future credit facility.
The Company intends to use a substantial portion of the net
proceeds of the Offering to redeem all of the currently outstanding
approximately $338 million of 9.875%/11.500% Senior Secured PIK
Toggle Notes due 2024 (the "2024 Notes") issued by its wholly-owned
subsidiaries StoneMor Partners L.P. and Cornerstone Family Services
of West Virginia Subsidiary, Inc., and to pay related fees and
expenses. Any remaining proceeds will be used for general corporate
purposes, which may include acquisitions.
The Notes have not been registered under the Securities Act or
any state securities laws and are expected to be offered only to
persons who are reasonably believed to be qualified institutional
buyers in reliance on Rule 144A under the Securities Act and to
non-U.S. persons in offshore transactions in reliance on Regulation
S. Unless so registered, the Notes may not be offered or sold in
the United States or to U.S. persons except pursuant to an
exemption from the registration requirements of the Securities Act
and applicable state securities laws.
This press release is being issued pursuant to, and in
accordance with, Rule 135c under the Securities Act, and is neither
an offer to sell nor a solicitation of an offer to buy the Notes or
any other securities and shall not constitute an offer to sell or a
solicitation of an offer to buy, or a sale of, the Notes or any
other securities in any jurisdiction in which such offer,
solicitation or sale is unlawful.
About StoneMor Inc.StoneMor Inc., headquartered
in Bensalem, Pennsylvania, is an owner and operator of cemeteries
and funeral homes in the United States, with 304 cemeteries and 70
funeral homes in 24 states and Puerto Rico. StoneMor’s cemetery
products and services, which are sold on both a pre-need (before
death) and at-need (at death) basis, include: burial lots, lawn and
mausoleum crypts, burial vaults, caskets, memorials and all
services which provide for the installation of this
merchandise.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements regarding
the Company’s ability to complete the offering of the Notes, its
application of the net proceeds from the offering and the
redemption of the outstanding 2024 Notes. These forward-looking
statements involve a number of risks and uncertainties. Among the
important factors that could cause actual results to differ
materially from the expectations indicated in the forward-looking
statements include uncertainties relating to market conditions for
corporate debt securities generally and for the securities of
deathcare companies and for the Company in particular and general
economic or political conditions. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
When considering forward-looking statements, you should keep in
mind the risk factors and other cautionary statements set forth in
StoneMor’s Annual Report on Form 10-K and the other
reports that StoneMor files with the Securities and Exchange
Commission, from time to time. Except as required under applicable
law, StoneMor assumes no obligation to update or revise any
forward-looking statements made herein or any other forward-looking
statements made by it, whether as a result of new information,
future events or otherwise.
CONTACTInvestor RelationsStoneMor Inc.(215)
826-4438
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