Daily News: August 3, 2012

BofA, Merrill Commit to Credit Facility for Carriage Services


Carriage Services, Inc. has entered into a commitment letter with Bank of America as administrative agent and Merrill Lynch Pierce Fenner and Smith as sole lead arranger and sole book manager for an up to $200 million senior secured credit facility providing for a new five-year $130 million term loan and an up to $70 million revolving credit facility.

The company said in a press release, “It is our intention to use these proceeds to refinance our existing revolving credit, redeem our existing 7.875% Senior Notes, pay the associated redemption premium, pay other transaction related fees and expenses and provide for future corporate needs.”

Bank of America has committed $50 million to the senior credit facility subject to the terms and conditions in the commitment letter. Closing for the facility is contingent on the satisfaction of certain customary closing conditions referred to in the commitment letter, execution of definitive financing documentation related to the facility, and the receipt of commitments from additional lenders to complete the $200 million facility on terms and conditions referred to in the commitment letter. While we do not anticipate any difficulties in satisfying the closing conditions and closing the senior credit facility, there can be no assurances that these conditions will be met or that we will close the senior credit facility.

Carriage Services is a provider of death care services and products. Carriage operates 164 funeral homes in 26 states and 33 cemeteries in 11 states.