Service Corporation International Announces Senior Notes Offering

Rhea-AI Summary

Service Corporation International (NYSE: SCI) announced a planned offering of $800 million in senior notes, subject to market conditions. The proceeds will be utilized to redeem existing 8.000% Senior Notes due in 2021, repay loans under its revolving credit facility, and cover related expenses. J.P. Morgan is leading the offering. This move is part of the company's financial strategy to manage debt effectively.

Positive

• The offering of $800 million indicates a proactive approach to debt management.
• The redemption of 8.000% Senior Notes will potentially reduce interest expenses.

Negative

• None.

HOUSTON, May 10, 2021 /PRNewswire/ -- Service Corporation International (NYSE: SCI) (the "Company") announces that it intends to offer $800 million aggregate principal amount of senior notes, subject to market and other conditions. 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 will use the 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 will act 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.

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SOURCE Service Corporation International

FAQ

What is the purpose of SCI's $800 million senior notes offering?

The proceeds will be used to redeem existing senior notes, repay revolver loans, and cover related expenses.

Who is managing the senior notes offering for SCI?

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

What will SCI do with the funds from the offering?

Funds will be used for debt redemption, loan repayment, and general corporate purposes.

What are the interest rates associated with the senior notes being redeemed by SCI?

The senior notes due in 2021 have an interest rate of 8.000%.

When was the press release about SCI's senior notes offering issued?

The press release was issued on May 10, 2021.