Carriage Services, Inc. Announces Amendment to Credit Facility Finalized
HOUSTON, May 15, 2014
HOUSTON, May 15, 2014 /PRNewswire/ -- Carriage Services, Inc. (NYSE: CSV) (the
"Company") announced today that the fifth amendment to the Credit Agreement
(the "Fifth Amendment") is now effective commensurate with today's closing of
that certain Asset Sale Agreement, by certain subsidiaries of each of the
Company and Service Corporation International, which was previously announced
on March 5, 2014. The new credit agreement under the Fifth Amendment,
increases, in total, from $235 million to $325 million and continues to be
administered by Bank of America, N.A.
Obligations under the Credit Agreement will mature on March 31, 2019. The
Fifth Amendment provides for an increase in the revolving credit facility from
$125 million to $200 million. Borrowings under the term loan facility of $125
million are subject to amortization payments of 7.5% of the principal amount
in the first two years following the Fifth Amendment effective date, 10.0% for
the third and fourth years following the Fifth Amendment effective date and
12.5% per year thereafter. The Fifth Amendment also modifies certain financial
covenants pertaining to the Company.
Mel Payne, Chief Executive Officer, stated, "We are pleased and appreciative
of the confidence our banks have shown in Carriage Services by increasing our
credit facility. We believe that the amended Credit Agreement increases our
financial flexibility and further enhances our acquisition program, while
allowing more capital for general corporate purposes and having a positive
impact on our future financial results by directly lowering our interest
expense and our cost of capital."
Statements set forth in this communication that are not historical facts are
intended to be forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The words "believe," "expect," "anticipate,"
"plan," "intend," "foresee," "should," "would," "could" or other similar
expressions are intended to identify forward-looking statements, which are
generally not historical in nature. These statements are based on assumptions
that the Company believes are reasonable; however, many important factors, as
discussed under "Forward-Looking Statements and Cautionary Statements" in the
Company's Annual Report on Form 10-K for the year ended December 31, 2013,
could cause the Company's results in the future to differ materially from the
forward-looking statements made herein and in any other documents or oral
presentations made by, or on behalf of, the Company. The Company assumes no
obligation to update or publicly release any revisions to forward-looking
statements made herein or any other forward-looking statements made by, or on
behalf of, the Company.
Carriage Services is a leading provider of deathcare services and merchandise
in the United States. Carriage operates 167 funeral homes in 27 states and 32
cemeteries in 11 states.
SOURCE Carriage Services, Inc.
Contact: Investor Relations, Bill Heiligbrodt, 713-332-8553
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