Service Corporation International Completes Offering of $850 Million of Senior Notes

Rhea-AI Summary

Service Corporation International (NYSE: SCI) announced the successful completion of a public offering of $850 million in 3.375% Senior Notes due 2030. The offering, part of an underwritten public offering under an SEC registration, will utilize net proceeds and cash reserves to repurchase $850 million of existing 5.375% Senior Notes due 2024. BofA Securities acted as the lead manager for this offering. The press release contains forward-looking statements that involve risks and uncertainties. For more details, visit the company's SEC filings.

Positive

• Successfully completed a public offering of $850 million Senior Notes.
• Proceeds will be used to repurchase existing higher-interest notes, potentially reducing interest expenses.

Negative

• None.

HOUSTON, Aug. 10, 2020 /PRNewswire/ -- Service Corporation International (NYSE: SCI) (the "Company") announced today that it has successfully completed its previously announced public offering of $850 million aggregate principal amount of 3.375% Senior Notes due 2030.  The offering was 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 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 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, 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 was the amount raised in the SCI public offering?

Service Corporation International raised $850 million in its public offering of Senior Notes.

What is the interest rate on the new Senior Notes issued by SCI?

The newly issued Senior Notes have an interest rate of 3.375% and are due in 2030.

What will SCI do with the proceeds from the Senior Notes offering?

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

When did Service Corporation International complete its public offering?

SCI completed its public offering on August 10, 2020.