StoneMor amends credit agreement, extends statement filing deadlines

By Tali Rackner

Norfolk, Va., March 16 – StoneMor Partners LP operating company StoneMor Operating LLC entered into an amendment to its credit agreement on Wednesday with Capital One, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment extends the deadline StoneMor is required to deliver to Capital One the audited financial statements for the year ended Dec. 31, 2016 to July 15.

The unaudited financial statements for the quarter ending March 31 are now required to be delivered no later than 45 days after the date on which StoneMor delivers the 2016 financial statements. The partnership must also provide unaudited monthly financial statements until the audited 2016 financial statements are delivered, the filing said.

In addition, the amendment increases the maximum consolidated leverage ratio from 4.25 times through the period ending Sept. 30, after which it will revert to 4 times, subject to StoneMor’s right to increase that ratio to a maximum of 4.25 times in connection with the consummation of certain acquisitions.

Also, the applicable interest rate was revised to add an additional consolidated leverage category. The spread now ranges from Libor plus 175 basis points to 375 bps. From closing of the amendment until the financial statements are delivered, interest is equal to Libor plus 375 bps.

The commitment fee was also amended to 30 bps to 50 bps. The initial commitment fee is 50 bps.

Furthermore, until Jan. 1, 2018, the partnership is prohibited from increasing the regularly scheduled quarterly cash distributions to be made to its partners under the amended credit agreement unless, at the time such distribution is declared and on a pro forma basis after giving effect to the payment of any such distribution, the consolidated leverage ratio is no greater than 3.75 times.

Finally, the amendment allows up to an aggregate of $53 million in realized losses in the loan parties’ investment portfolio for all periods to be added back for purposes of calculating consolidated EBITDA.

Each lender was paid a fee equal to 0.25% on the amount of its respective revolving commitment under the amended credit agreement.

StoneMor is a Levittown, Pa.-based cemetery and funeral services provider.

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