StoneMor Inc. Announces Pricing of Senior Secured Notes Offering
April 23 2021 - 4:33PM
StoneMor Inc. (NYSE: STON) (“StoneMor” or the
“Company”), a leading owner and operator of cemeteries and
funeral homes, announced today the pricing of $400 million
aggregate principal amount of its 8.500% Senior Secured Notes due
2029 (the "Notes"). The Notes will be issued at a price equal to
100% of the principal amount thereof, plus accrued interest from
May 11, 2021. The Notes will be senior secured obligations of the
Company and will be guaranteed by certain of the Company’s domestic
subsidiaries and by any foreign subsidiary that guarantees any
future credit facility. The offering is expected to close on May
11, 2021, subject to customary closing conditions.
The Company intends to use the net proceeds of the offering to
fund the redemption in full of approximately $338.1 million
aggregate principal amount of the outstanding 9.875%/11.500% Senior
Secured PIK Toggle Notes due 2024 (the “2024 Notes”) together with
an approximately $18.5 million prepayment premium and pay fees and
expenses incurred in connection with the offering. Any remaining
proceeds will be used for general corporate purposes, which may
include acquisitions.
The Notes have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), or any state securities
laws and are being offered only to persons who are reasonably
believed to be qualified institutional buyers in reliance on Rule
144A under the Securities Act and to non-U.S. persons in offshore
transactions in reliance on Regulation S. Unless so registered, the
Notes may not be offered or sold in the United States or to U.S.
persons except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state securities
laws.
This press release is being issued pursuant to, and in
accordance with, Rule 135c under the Securities Act, and is neither
an offer to sell nor a solicitation of an offer to buy the Notes or
any other securities and shall not constitute an offer to sell or a
solicitation of an offer to buy, or a sale of, the Notes or any
other securities in any jurisdiction in which such offer,
solicitation or sale is unlawful.
About StoneMor Inc.
StoneMor Inc., headquartered in Bensalem, Pennsylvania, is an
owner and operator of cemeteries and funeral homes in the United
States, with 304 cemeteries and 70 funeral homes in 24 states and
Puerto Rico. StoneMor’s cemetery products and services, which are
sold on both a pre-need (before death) and at-need (at death)
basis, include: burial lots, lawn and mausoleum crypts, burial
vaults, caskets, memorials and all services which provide for the
installation of this merchandise.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements regarding
the Company’s ability to complete the offering of the Notes, its
application of the net proceeds from the offering and the
redemption of the outstanding 2024 Notes. These forward-looking
statements involve a number of risks and uncertainties. Among the
important factors that could cause actual results to differ
materially from those results indicated in the forward-looking
statements include uncertainties relating to market conditions for
corporate debt securities generally and for the securities of
deathcare companies and for the Company in particular and general
economic or political conditions. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
When considering forward-looking statements, you should keep in
mind the risk factors and other cautionary statements set forth in
StoneMor’s Annual Report on Form 10-K and the other
reports that StoneMor files with the Securities and Exchange
Commission, from time to time. Except as required under applicable
law, StoneMor assumes no obligation to update or revise any
forward-looking statements made herein or any other forward-looking
statements made by it, whether as a result of new information,
future events or otherwise.
CONTACTInvestor RelationsStoneMor Inc.(215)
826-4438
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