Service Corporation International Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Service Corporation International (NYSE: SCI) priced an underwritten public offering of $850 million in 3.375% Senior Notes due 2030. The offering is set to close on August 10, 2020, pending standard conditions. Proceeds will be used to repurchase $850 million in existing 5.375% Senior Notes due 2024. BofA Securities is the lead manager for this offering. The company emphasizes that this release does not constitute an offer to sell or buy the securities mentioned.

Positive

• Pricing of $850 million in 3.375% Senior Notes due 2030 may strengthen the company's financial position.
• Use of proceeds to repurchase existing higher-rate notes could reduce future interest expenses.

Negative

• The need to refinance existing debt may indicate previous cash flow challenges.
• Issuing new debt may increase overall leverage and related financial risks.

HOUSTON, Aug. 3, 2020 /PRNewswire/ -- Service Corporation International (NYSE: SCI) (the "Company") announces that it has priced an underwritten public offering of $850 million aggregate principal amount of 3.375% Senior Notes due 2030. 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 August 10, 2020, subject to the satisfaction of customary closing conditions.

The Company will use net proceeds from the offering, together with cash on hand, to repurchase its $850 million 5.375% Senior Notes due 2024 (the "Existing Notes") pursuant to a concurrent tender offer, and pay related fees and expenses.

BofA Securities 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:

BofA Securities
Attention: Prospectus Department
NC1-004-03-43
200 North College Street, 3^rd Floor
Charlotte, North Carolina 28255-0001
Telephone: (800) 294-1322
Email:  dg.prospectus_requests@bofa.com

This press release does not constitute an offer to sell or purchase, nor the solicitation of an offer to buy or an offer to sell, the securities described herein, including the Existing Notes that are subject to the concurrent tender offer, nor shall there be any sale or purchase of such securities in any state in which such offer, solicitation, purchase or sale would be unlawful.

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 2019 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020. 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 deathcare products and services.  At June 30, 2020, we owned and operated 1,472 funeral service locations and 483 cemeteries (of which 296 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico.  Through our businesses, we market the Dignity Memorial® brand which offers assurance of quality, value, caring service, and exceptional customer satisfaction.

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SOURCE Service Corporation International

FAQ

What is the amount of the Senior Notes offering by SCI?

Service Corporation International is offering $850 million in Senior Notes.

When will SCI close the Senior Notes offering?

The offering is expected to close on August 10, 2020.

What will SCI use the proceeds from the Senior Notes for?

The proceeds will be used to repurchase $850 million in existing 5.375% Senior Notes due 2024.

Who is the lead manager for the SCI Senior Notes offering?

BofA Securities is acting as the lead joint book-running manager.

Is the press release an offer to sell SCI securities?

No, the press release does not constitute an offer to sell or purchase the securities mentioned.