StoneMor Inc. Announces Closing of Senior Secured Notes Offering
May 11 2021 - 4:01PM
StoneMor Inc. (NYSE: STON) (“StoneMor” or the
“Company”), a leading owner and operator of cemeteries and
funeral homes, announced today it closed its private offering of
$400 million aggregate principal amount of its 8.500% Senior
Secured Notes due 2029 (the "Notes").
The Notes are senior secured obligations of the
Company, and interest is payable semi-annually in arrears. The
Notes are fully and unconditionally guaranteed, on a senior secured
basis, jointly and severally by certain of the Company’s domestic
subsidiaries and will also be guaranteed by any foreign subsidiary
that guarantees any future credit facility.
The Company used the net proceeds of the offering
to fund the redemption in full of approximately $338.1 million
aggregate principal amount of the outstanding 9.875%/11.500% Senior
Secured PIK Toggle Notes due 2024 (the “2024 Notes”) together with
an approximately $18.5 million prepayment premium and pay fees and
expenses incurred in connection with the offering. The remaining
proceeds will be used for general corporate purposes, which may
include acquisitions.
The Notes were offered only to persons who were
reasonably believed to be qualified institutional buyers in
reliance on Rule 144A under the Securities Act of 1933, as amended
(the “Securities Act”) and to non-U.S. persons in offshore
transactions in reliance on Regulation S under the Securities Act.
Neither the Notes nor the related guarantees have been, nor will
be, registered under the Securities 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 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 application of the remaining net
proceeds from the offering. These forward-looking statements
involve a number of risks and uncertainties. Among the important
factors that could cause actual results to differ materially from
those results indicated in the forward-looking statements include
uncertainties relating to the Company’s ability to identify
potential acquisitions. 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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