Service Corp. prices tender consideration for 6½% notes, 7.7% notes

By Jennifer Chiou

New York, April 9 - Service Corp. International said that it received tenders from holders of $149.1 million of its $195 million of 6½% notes due Feb. 29, 2008 and $173.8 million of its $202.588 million of 7.7% notes due 2009 with Cusip numbers 817565AP9, 817565AX2 and 817565AW4 by the early deadline at 5 p.m. ET on April 5.

The tender offers end at midnight ET on April 20. They began on March 23.

For each $1,000 principal amount of notes, the company said it will pay $1,009.17 for the 6½% notes and $1,048.30 for the 7.7% notes.

Service Corp. determined the payouts using the 4 5/8% Treasury due Feb. 29, 2008 and a fixed spread of 50 basis points for the 6½% notes and the 3 1/8% Treasury due April 15, 2009 and a fixed spread of 50 bps for the 7.7% notes.

The reference yield and the tender offer yield for the 6½% notes are 4.973% and 5.473%, respectively, while the reference yield and the tender offer yield for the 7.7% notes are 4.647% and 5.147%, respectively.

The payouts include a $30.00 early participation payment for notes tendered by 5 p.m. ET on April 5. The company will also pay accrued interest to the payment date.

Banc of America Securities LLC (888 292-0070 or call collect 704 388-4813) and Merrill Lynch & Co. (888 654-8637 or call collect 212 449-4914) are the dealer managers. Global Bondholder Services Corp. (866 387-1500 or call collect 212 430-3774) is the information agent.

Based in Houston, the company provides funeral products and services.

© 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.