Carriage Services has entered into the seventh amendment to the credit agreement which provides for a change lowering the revolving credit commitments to $150 million from $200 million and increasing new funding under its term loan facility to $150 million from $125 million.

The credit agreement will continue to be administered by Bank of America.

Obligations under the credit agreement will mature at the earlier of (a) any date that is 91 days prior to the maturity of any subordinated debt or (b) February 9, 2021. Borrowings under the term loan facility of $150 million are subject to amortization payments of approximately $2.8 million at the end of each fiscal quarter beginning with the fiscal quarter ending March 31, 2016 through the fiscal quarter ending December 31, 2017, $3.75 million at the end of each fiscal quarter beginning with the fiscal quarter ending March 31, 2018 through the fiscal quarter ending March 31, 2020 and approximately $4.7 million at the end of each fiscal quarter beginning with the fiscal quarter ending June 30, 2020 through the fiscal quarter ending December 31, 2020.

Also, outstanding borrowings bear interest at either a prime rate or a LIBOR rate, plus an applicable margin based upon the company’s senior secured leverage ratio, ranging from 1.625% to 3.125% for LIBOR borrowings and 0.625% to 2.125% for prime rate borrowings. Other important changes in the seventh amendment are the lowering of the applicable margin by 37.5 basis points and the improvement of certain financial covenants for the company.

Mel Payne, CEO, stated, “As we enter the fifth year of Carriage’s Good to Great Journey, we are appreciative of the confidence our bank group has shown in Carriage by executing this amendment. We believe that the amended credit agreement increases our financial flexibility while lowering our interest expense and our cost of capital. Moreover, the amendment improves our ability to maximize intrinsic value per share over the long term.”