Service, Stewart get tenders, consents for $449.7 million notes so far

By Angela McDaniels

Tacoma, Wash., May 12 - Service Corp. International and subsidiary Stewart Enterprises, Inc. announced the early results of their tender offers and consent solicitation.

Service is offering to buy back its $136,465,000 of outstanding 6¾% senior notes due 2015 and $250 million of outstanding 7% senior notes due 2019, and Stewart is offering to buy back its $200 million of outstanding 6½% senior notes due 2019.

Holders had tendered about $63 million, or 46.2%, of the 6¾% notes, $231 million, or 92.4%, of the 7% notes and $155.7 million, or 77.9%, of the 6½% notes as of 5 p.m. ET on May 9, the consent payment date, according to a company news release.

Service waived the closing condition to its tender offer for the 6¾% notes that holders tender at least a majority of the outstanding notes and provide related consents, and the companies have exercised their early settlement option.

The total purchase price for each $1,000 principal amount is $1,054.27 for the 6¾% notes, $1,067.64 for the 7% notes and $1,052.50 for the 6½% notes. Each of these payments includes an early tender payment of $30.00 for each note tendered by the consent payment date.

The companies also will pay accrued interest up to but excluding the payment date, which was scheduled for May 12 for notes tendered by the early deadline.

The tender offers will end at midnight ET on May 23.

The companies also are soliciting consents to authorize the elimination of most of the restrictive covenants and some events of default in the indentures governing the notes and to reduce the notice period required in connection with a redemption of the notes.

Consents are needed from the holders of a majority of a series of notes in order to amend that series. Holders may not tender their notes without delivering their consents and vice versa.

Enough consents have been received to amend the 7% notes and the 6½% notes.

The offers are conditioned on financing. The company plans to use proceeds from its $550 million offering of 5 3/8% notes due 2024, borrowings under its revolving credit facility and cash on hand to fund the tender offers.

The companies plan to redeem any notes that remain outstanding after the offers end.

The dealer manager and solicitation agent is Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760). The information agent is Global Bondholder Services Corp. (212 430-3774, for banks and brokers, or 866 470-4200).

Service and Stewart are providers of death-care products and services based in Houston and Jefferson, La., respectively.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.