Service Corp’s. new $1.4 billion credit facility comes with Libor plus 100 bps-200 bps rate

By Wendy Van Sickle

Columbus, Ohio, March 4 – Service Corp. International’s new $1.4 billion unsecured credit agreement has interest of Libor plus 100 basis points to 200 bps, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the agreement provides for a $700 million revolving credit facility and a $700 million term loan A, both maturing in 2021.

There is a commitment fee of 15 bps to 35 bps that, along with the interest margin, depends on the company’s leverage ratio.

JPMorgan Chase Bank, NA, Bank of America Merrill Lynch, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc. acted as joint bookrunners and joint lead arrangers; Bank of America, NA, Wells Fargo Bank, NA and Suntrust Bank as co-syndication agents; and BBVA Compass, Bank of Nova Scotia, Fifth Third Bank, U.S. Bank NA and Regions Bank as co-documentation agents.

JPMorgan Chase is the administrative agent.

The new financing replaces Service Corp.’s previous senior credit facility, which comprised a $600 million term loan facility and a $500 million revolver maturing in July 2018.

The company said it will use proceeds from the term loan A and some revolver drawings to repay $580 million of outstanding borrowings under its existing credit agreement and to redeem all $295 million of outstanding 7% senior notes due 2017.

Service Corp. is a Houston-based provider of death care products and services.

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