New Issue: Service Corp. sells $850 million 10-year notes at par to yield 3 3/8%

By Paul A. Harris

Portland, Ore., Aug. 3 – Service Corp. International priced an $850 million issue of 10-year senior notes (Ba3/BB) at par to yield 3 3/8% in a Monday drive-by, according to market sources.

The yield printed 12.5 basis points through the 3½% to 3¾% yield talk. Initial talk had the deal coming to yield in the 4% area.

BofA Securities Inc., J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.

The Houston-based death care services provider plans to use the proceeds to fund a tender offer for $850 million of its 5 3/8% senior notes due 2024, with the remainder to be used for general corporate purposes, which may include repayment, redemption or repurchase of debt.

Issuer:	Service Corp. International
Amount:	$850 million
Maturity:	Aug. 15, 2030
Securities:	Senior notes
Bookrunners:	BofA Securities Inc., J.P. Morgan Securities LLC, Truist Securities Inc. and Wells Fargo Securities LLC
Senior co-managers:	BBVA Securities Inc., PNC Capital Markets Corp., Regions Securities LLC and Scotia Capital (USA) Inc.
Lead co-managers:	Citizens Capital Markets Inc., Fifth Third Securities Inc., HSBC Securities (USA) Inc., MUFG, Raymond James & Associates Inc., RBC Capital Markets Corp., U.S. Bancorp Investments Inc. and Zions First National Bank Capital Markets
Coupon:	3 3/8%
Price:	Par
Yield:	3 3/8%
Spread:	281 bps
Call protection:	Five years
Trade date:	Aug. 3
Settlement date:	Aug. 10
Ratings:	Moody's: Ba3
	S&P: BB
Distribution:	SEC registered
Price talk:	3½% to 3¾%
Marketing:	Drive-by

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