StoneMor amends credit agreement, extends statement filing deadlines

By Tali Rackner

Minneapolis, June 18 – StoneMor Partners LP entered into an amendment to its credit agreement on Monday to extend statement filing dates and revise revolver terms, according to a press release.

The amendment extends the deadline by which StoneMor is required to deliver the audited financial statements for the year ended Dec. 31, 2017 to June 30.

The unaudited financial statements for the quarter ended March 31 are now required to be delivered no later than 60 days after the date on which StoneMor delivers the audited 2017 financial statements. The unaudited statements for the quarter ending June 30 must be delivered no later than 105 days after delivery of the 2017 audited financial statements.

In addition, the revolving commitment was reduced to $175 million from $200 million and interest was increased by 50 basis points.

The amendment also increases the maximum consolidated secured net leverage ratio to 4.25 times through Sept. 30, stepping down to 5.5 times through Dec. 31, to 5 times through Dec. 31, 2019 and to 4.5 times through Dec. 31, 2020.

The fixed-charge coverage ratio was reduced to 1 time in 2018 and 1.1 times in 2019 and the consolidated debt service coverage ratio was eliminated.

Furthermore, the amendment established limitations on incurring additional unsecured debt and using subordinated debt to fund certain acquisitions.

StoneMor said it will continue to restrict distributions to partners until the consolidated leverage ratio (which includes the effect of unsecured debt, of which there was about $173.5 million outstanding as of March 31) is not greater than 7.5 times and there is at least $25 million of availability under the revolver.

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

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