By Paul Deckelman
New York, April 28 - Service Corp. International priced $550 million of 10-year senior notes (B1/BB-) on Monday, according to high-yield syndicate sources.
The notes priced at par to yield 5 3/8%, in the middle of pre-deal market price talk of 5¼% to 5½%.
The quick-to-market offering priced just hours after it was announced, after having been pitched to investors via a morning conference call.
The deal was brought to market by bookrunners Wells Fargo Securities LLC, B of A Merrill Lynch and J.P. Morgan Securities LLC.
The Rule 144A/Regulation S deal was sold with registration rights,
Service Corp. - the Houston-based leader in the deathcare industry, owning several thousand funeral homes and hundreds of cemeteries in the United States, Canada and Germany - plans to use proceeds from the offering, together with borrowings under its revolving credit facility and cash on hand, to finance the purchase via tender offers, or the subsequent repurchase or redemption, of all of its outstanding 6¾% senior notes due 2015 and 7% senior notes due 2019 and all of the outstanding 6½% senior notes due 2019 of its wholly owned Stewart Enterprises, Inc. subsidiary.
| Issuer: | Service Corp. International
|
| Amount: | $550 million
|
| Maturity: | May 15, 2024
|
| Securities: | Senior notes
|
| Joint bookrunners: | Wells Fargo Securities LLC, B of A Merrill Lynch, J.P. Morgan Securities LLC.
|
| Senior co-managers: | Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | BB&T Capital Markets , BBVA Securities, Inc., BOSC, Inc., Mitsubishi UFJ Securities(USA) Inc.
|
| Coupon: | 5 3/8%
|
| Price: | Par
|
| Yield: | 5 3/8%
|
| Spread: | 270 bps over 2.75% Treasury due Feb. 15, 2024
|
| Trade date: | April 28
|
| Settlement date: | May 12
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S, with registration rights
|
| Price talk: | 5¼% to 5½%
|
| Marketing: | Quick to market
|
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