By Paul A. Harris
St. Louis, Sept. 27 - Service Corp. International priced a $500 million two-part offering of senior notes (B1/BB-) on Wednesday, according to an informed source.
The Houston-based operator of funeral homes and cemeteries priced a $250 million tranche of eight-year notes at par to yield 7 3/8%, on top of price talk.
The company also priced a $250 million tranche of 12-year notes at par to yield 7 5/8%, at the tight end of the 7¾% area price talk.
JP Morgan and Merrill Lynch & Co. ran the books for the transaction, which was conducted according to the provisions of Rule 144A with registration rights and Regulation S. The co-managers were Banc of America Securities LLC, Lehman Brothers, Raymond James and Morgan Keegan & Co.
Proceeds, together with available cash and other financings, will be used to fund the acquisition of Cincinnati-based funeral services provider Alderwoods Group Inc. and to refinance other debt.
| Issuer: | Service Corp. International
|
| Total amount: | $500 million
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Merrill Lynch & Co.
|
| Co-managers: | Banc of America Securities LLC, Lehman Brothers, Raymond James, Morgan Keegan & Co.
|
| Trade date: | Sept. 27
|
| Settlement date: | Oct. 3
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
|
|
| Eight-year notes
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2014
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 280 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Price talk: | 7 3/8% area
|
|
|
| 12-year notes
|
| Amount: | $250 million
|
| Maturity: | Oct. 1, 2018
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 304 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Price talk: | 7¾% area
|
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