Service Corporation International Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Service Corporation International (NYSE: SCI) announced an underwritten public offering of $800 million in 4.000% Senior Notes due 2031. This offering is set to close on May 24, 2021, pending customary conditions. The net proceeds will be used to redeem existing 8.000% Senior Notes due 2021, repay revolving credit loans, and for general corporate purposes. J.P. Morgan leads the offering, which is part of an effective shelf registration with the SEC.

Positive

• Raised $800 million in senior notes to strengthen financial position.
• Proceeds aimed at redeeming higher-interest debt, potentially lowering interest expenses.

Negative

• Refinancing existing debt could indicate prior financial pressures.
• Incurs fees and expenses related to the debt offering.

HOUSTON, May 10, 2021 /PRNewswire/ -- Service Corporation International (NYSE: SCI) (the "Company") announces that it has priced an underwritten public offering of $800 million aggregate principal  amount of 4.000% Senior Notes due 2031. The offering will be made by means of an underwritten public offering pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). The Company expects to close the sale of the notes on May 24, 2021, subject to the satisfaction of customary closing conditions.

The Company will use net proceeds from the offering to fund the redemption of all of its outstanding 8.000% Senior Notes due 2021, repay the outstanding loans under its revolving credit facility and pay related fees, interest and expenses. The Company intends to use any remaining net proceeds for general corporate purposes.

J.P. Morgan 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. When available, copies of the prospectus supplement relating to the public offering may be obtained from:

J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, NY 11717
Attention: Prospectus Department
Telephone: (866) 803-9204
Email: prospectus-eq_fi@jpmchase.com

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 consolidated 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.

For further information on these and other risks and uncertainties, see our SEC filings, including our 2020 Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. 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 (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance. We offer families exceptional service in planning life celebrations and personalized remembrances. Our Dignity Memorial® brand serves approximately 500,000 families each year with professionalism, compassion, and attention to detail. At March 31, 2021, SCI owned and operated 1,461 funeral homes and 484 cemeteries (of which 296 are combination operations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. Please visit us at www.SCI-Corp.com and www.DignityMemorial.com.

View original content:http://www.prnewswire.com/news-releases/service-corporation-international-announces-pricing-of-senior-notes-offering-301287810.html

SOURCE Service Corporation International

FAQ

What is the purpose of Service Corporation International's senior notes offering on May 10, 2021?

The offering aims to raise $800 million to redeem existing higher interest debt and repay loans.

What is the interest rate on the new senior notes issued by SCI?

The new senior notes will have a fixed interest rate of 4.000%.

When does Service Corporation International expect to close its senior notes offering?

The offering is expected to close on May 24, 2021, subject to customary closing conditions.

Who is managing Service Corporation International's public offering of senior notes?

J.P. Morgan is acting as the lead joint book-running manager for the offering.

What will SCI do with the proceeds from the new senior notes offering?

Proceeds will be used to redeem existing senior notes, repay loans, and for general corporate purposes.