Carriage Services closed its private offering of $325 million and used a portion to repay its existing indebtedness under its former secured credit facility.
The company intends to use the remainder of the net proceeds for general corporate purposes, including acquisitions.
The company also entered into a new senior secured revolving credit facility with commitments of $150 million to provide ongoing working capital and for general corporate purposes. The new facility is undrawn at closing and has $148 million of availability after giving effect to the $2 million of letters of credit outstanding.
According to a related 8-K filing, Bank of America served as administrative agent on the revolver.
The new credit facility included an accordion feature allowing for future increases in the facility size by an additional amount of up to $75 million. The facility will mature on May 31, 2023. Interest will accrue on amounts outstanding under the new facility based on the company’s total leverage ratio.
The facility is secured by a first-priority perfected security interest in and lien on substantially all of the company’s personal property assets and those of the credit facility guarantors.
Carriage Services is a provider of deathcare services and merchandise in the U.S. Carriage operates 178 funeral homes in 29 states and 32 cemeteries in 11 states.
