Service Corporation International Completes Offering of $800 Million of Senior Notes
Service International (NYSE: SCI) has successfully completed a public offering of $800 million in 5.750% Senior Notes due 2032. The offering was made through an underwritten public offering under an effective shelf registration statement filed with the SEC. The company plans to use the net proceeds to repay outstanding loans under its revolving credit facility and cover related fees, interest, and expenses. Wells Fargo Securities acted as the lead joint book-running manager for the offering.
Service International (NYSE: SCI) ha completato con successo un'offerta pubblica di $800 milioni in Note Senior al 5.750% con scadenza nel 2032. L'offerta è stata effettuata attraverso un'offerta pubblica sottoscritta ai sensi di una dichiarazione di registrazione efficace depositata presso la SEC. L'azienda prevede di utilizzare i proventi netti per ripagare prestiti in sospeso nel suo programma di credito revolving e coprire le relative spese, interessi e commissioni. Wells Fargo Securities ha agito come lead joint book-running manager per l'offerta.
Service International (NYSE: SCI) ha completado con éxito una oferta pública de $800 millones en Notas Senior al 5.750% con vencimiento en 2032. La oferta se realizó a través de una oferta pública suscrita bajo una declaración de registro efectiva presentada ante la SEC. La empresa planea utilizar los ingresos netos para pagar préstamos pendientes bajo su línea de crédito revolving y cubrir tarifas, intereses y gastos relacionados. Wells Fargo Securities actuó como el administrador principal conjunto de la oferta.
Service International (NYSE: SCI)는 8억 달러 규모의 공모를 성공적으로 완료했습니다는 5.750%의 2032년 만기 선순위 채권입니다. 이번 공모는 SEC에 제출된 유효한 선등록신청서에 따라 인수된 공모를 통해 이루어졌습니다. 회사는 순수익을 사용하여 미지급 대출을 상환할 계획입니다 그리고 관련 수수료, 이자 및 비용을 충당합니다. 웰스 파고 증권이 이번 공모의 주요 공동 북런닝 매니저로 활동했습니다.
Service International (NYSE: SCI) a réussi à réaliser une offre publique de 800 millions de dollars dans des Obligations Senior de 5,750% arrivant à échéance en 2032. L'offre a été effectuée par le biais d'une offre publique souscrite en vertu d'une déclaration d'enregistrement effective déposée auprès de la SEC. L'entreprise prévoit d'utiliser les produits nets pour rembourser des prêts en cours dans sa ligne de crédit renouvelable et couvrir les frais, intérêts et dépenses associés. Wells Fargo Securities a agi en tant que gestionnaire principal conjoint pour l'offre.
Service International (NYSE: SCI) hat erfolgreich eine Public Offering über 800 Millionen US-Dollar in 5.750% Senior Notes mit Fälligkeit 2032 abgeschlossen. Das Angebot wurde durch eine zeichnungsgebundene öffentliche Platzierung im Rahmen einer wirksamen Regulierungsanmeldung bei der SEC durchgeführt. Das Unternehmen plant, die Nettoerlöse zu verwenden, um ausstehende Darlehen aus seiner revolvierenden Kreditfazilität zurückzuzahlen und damit verbundene Gebühren, Zinsen und Ausgaben zu decken. Wells Fargo Securities fungierte als führender gemeinsamer Buchführer für das Angebot.
- Successfully raised $800 million through senior notes offering
- Repayment of outstanding loans under revolving credit facility
- Effective use of shelf registration statement for public offering
- Increased long-term debt with 5.750% interest rate
- Potential impact on future interest expenses
Insights
SCI's successful $800 million senior notes offering at
The market's reception to this sizable offering suggests investor confidence in SCI's long-term prospects and creditworthiness. However, investors should monitor the impact on SCI's debt-to-equity ratio and interest coverage metrics. While this refinancing may optimize the capital structure, it's important to assess how it affects overall leverage and future financial agility.
This debt offering by SCI, a leader in the death care industry, reflects broader market trends. With interest rates potentially stabilizing, companies are seizing opportunities to secure long-term financing at attractive rates. The 8-year maturity of these notes aligns with SCI's long-term planning horizon, typical in an industry with steady, recession-resistant demand.
Investors should consider how this capital might support SCI's growth strategies, potentially funding acquisitions or modernization efforts in an evolving industry landscape. The successful placement of
The Company will use the net proceeds from the offering to repay the outstanding loans under its revolving credit facility and pay related fees, interest and expenses.
Wells Fargo Securities acted as the lead joint book-running manager for the offering.
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, nor shall there be any sale of securities in any state in which such offer, solicitation, purchase or sale would be unlawful. The notes were offered only by means of a prospectus supplement and accompanying base prospectus.
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. These factors include, among others, the following: our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control; we may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow; our ability to execute our strategic plan depends on many factors, some of which are beyond our control; we may be adversely affected by the effects of inflation; our results may be adversely affected by significant weather events, natural disasters, catastrophic events or public health crises; our credit agreements contain covenants that may prevent us from engaging in certain transactions; if we lose the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds; increasing death benefits related to preneed contracts funded through life insurance or annuity contracts may not cover future increases in the cost of providing a price-guaranteed service; the financial condition of third-party life insurance companies that fund our preneed contracts may impact our future revenue; unfavorable publicity could affect our reputation and business; our failure to attract and retain qualified sales personnel could have an adverse effect on our business and financial condition; we use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks, therefore, we could be exposed to unexpected costs that could negatively affect our financial performance; declines in overall economic conditions beyond our control could reduce future potential earnings and cash flows and could result in future impairments to goodwill and/or other intangible assets; any failure to maintain the security of the information relating to our customers, their loved ones, our associates, and our vendors could damage our reputation, could cause us to incur substantial additional costs and to become subject to litigation, and could adversely affect our operating results, financial condition, or cash flow; our Canadian business exposes us to operational, economic, and currency risks; our level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, and may prevent us from fulfilling our obligations under our indebtedness; a failure of a key information technology system or process could disrupt and adversely affect our business; the funeral and cemetery industry is competitive; if the number of deaths in our markets declines, our cash flows and revenue may decrease; changes in the number of deaths are not predictable from market to market or over the short term; if we are not able to respond effectively to changing consumer preferences, our market share, revenue, and/or profitability could decrease; the continuing upward trend in life expectancy and the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows; our funeral and cemetery businesses are high fixed-cost businesses; risks associated with our supply chain could materially adversely affect our financial performance; regulation and compliance could have a material adverse impact on our financial results; unfavorable results of litigation could have a material adverse impact on our financial statements; cemetery burial practice claims could have a material adverse impact on our financial results; the application of unclaimed property laws by certain states to our preneed funeral and cemetery backlog could have a material adverse impact on our liquidity, cash flows, and financial results; changes in taxation, or the interpretation of tax laws or regulations, as well as the inherent difficulty in quantifying potential tax effects of business decisions could have a material adverse effect on the results of our operations, financial condition, or cash flows; and other factors identified in our reports filed with the SEC under the Securities Exchange Act of 1934, as amended (the "Exchange Act").
For further information on these and other risks and uncertainties, see our SEC filings, including our 2023 Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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 and make no undertaking 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
For additional information contact: InvestorRelations@sci-us.com | ||||||||||||||
Investors: | Allie O'Connor - Assistant Vice President / Investor Relations | (713) 525-9156 | ||||||||||||
Trey Bocage - Director / Investor Relations | (713) 525-3454 | |||||||||||||
Media: | Jay Andrew - Assistant Vice President / Corporate Communications | (713) 525-3468 | ||||||||||||
View original content:https://www.prnewswire.com/news-releases/service-corporation-international-completes-offering-of-800-million-of-senior-notes-302250516.html
SOURCE Service Corporation International
FAQ
What is the interest rate and maturity date of SCI's new senior notes?
How much did SCI raise in its recent senior notes offering?
What will SCI use the proceeds from the senior notes offering for?
Who was the lead joint book-running manager for SCI's senior notes offering?
