Service Corp. plans to sell $550 million 10-year senior notes

By Paul Deckelman

New York, April 28 - Service Corp. International plans to sell $550 million of 10-year senior notes.

High-yield syndicate sources said that the Rule 144A and Regulation S deal will come to market via Wells Fargo Securities LLC, BofA Merrill Lynch and J.P. Morgan Securities LLC.

Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. will be senior co-managers.

The sources said the deal was being marketed to investors via a morning conference call, with pricing expected Monday afternoon.

The notes will have five years of call protection and are rated B1 by Moody's Investors Service and BB- by Standard & Poor's.

Service Corp. - the Houston-based leader in the deathcare industry, owning thousands of funeral homes and hundreds of cemeteries in the United States, Canada and Germany - plans to use the net proceeds of the offering, together with borrowings under its revolving credit facility and cash on hand, to finance the purchase, in previously announced tender offers, or the subsequent repurchase or redemption, of all of its own 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.

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