Service Corporation International
(NYSE: SCI) (“SCI”), which owns and operates funeral service locations and
cemeteries, announced today that it has priced an underwritten public offering
of $150.0 million of senior notes due 2021, which will bear interest at a rate
of 8.00% per annum. The notes are being sold at 98.115% of par, which equates
to an effective yield to maturity of approximately 8.25%. SCI expects to
close the sale of the notes on November 10, 2009, subject to the satisfaction
of customary closing conditions.
SCI intends to use the net proceeds from the offering, together with available
cash, to fund SCI’s acquisition of Keystone North America Inc. The offering is
being made under SCI’s existing shelf registration statement previously filed
with the Securities and Exchange Commission (“SEC”).
Pending consummation of the Keystone acquisition, the net proceeds from the
offering will be held in an escrow account. In the event the acquisition is
not consummated on or prior to June 30, 2010, SCI will redeem the notes,
within five business days of such date, using the escrowed net proceeds from
the offering plus an amount of escrowed cash or treasury securities such that
the escrowed funds are sufficient to fund the redemption, at a redemption
price equal to 101% of the principal amount, plus accrued and unpaid interest
to, but not including, the date of redemption. The notes may also be redeemed
at SCI’s option, in whole, but not in part, at any time prior to June 30,
2010, if SCI believes, in its sole judgment, that the acquisition will not be
consummated by that date. Upon closing of the offering, SCI will deposit into
the escrow account cash or treasury securities sufficient to redeem all of the
notes, if required.
J.P. Morgan Securities Inc. is acting as the lead joint bookrunning manager
for the offering. The offering may be made only by means of a prospectus and
related prospectus supplement. The prospectus supplement will be filed with
the SEC and may be found on its website at www.sec.gov. Copies of the
prospectus supplement relating to the public offering may be obtained from:
J.P. Morgan Securities Inc.
270 Park Avenue, New York, NY 10017
Attention: Prospectus Department
Telephone: 212-270-3994
Source: SOURCE Service Corporation International
Investors, Debbie Young, Director, +1-713-525-9088, or media, Lisa Marshall,
Managing Director, Corporate Communications, +1-713-525-3066, both of Service
Corporation International
