BofA Administers Carriage Services Facility Amendment
Carriage Services announced it entered into a fifth amendment to its credit agreement increasing the total from $235 million to $325 million. The facility continues to be administered by Bank of America.
The fifth amendment will become effective upon consummation 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 Asset Sale Agreement).
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 amendment effective date and 12.5% per year thereafter. The fifth amendment also modifies certain financial covenants pertaining to the company.
Mel Payne, CEO, 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.”