By Paul Deckelman
New York, June 10 - Service Corp. International sold $300 million of 12-year senior notes Friday, high yield primary market sources said, with the 7% coupon bonds pricing at 99.003 to yield 7 1/8% - in line with pre-deal market price talk.
The Houston-based deathcare giant's deal was brought to market by joint bookrunning managers Merrill Lynch & Co. and JP Morgan, along with co-managers Banc of America Securities, Lehman Brothers and Raymond James.
The Rule 144A deal is non-callable for the life of the issue, outside of a make-whole call at 50 basis points over Treasuries.
The new bonds carry a Ba3 rating from Moody's Investors Service and a BB rating from Standard & Poor's.
The company plans to use the proceeds of the new deal to finance its tender offer for its outstanding 7.2% notes due 2006 and 6 7/8% notes due 2007.
Service Corp.'s offering was the latest in a string of quickly shopped drive-by offerings brought this week by well-known issuers looking to opportunistically take advantage of market conditions to get their financing done without going through the traditional process of a lengthy roadshow. Other such deals this past week included those for Qwest Communications International Inc. ($1.75 billion), DirecTV Group Inc. ($1 billion), Chesapeake Energy Corp. ($600 million) and MGM Mirage ($500 million).
Service Corp.'s deal was announced by the company Wednesday, was marketed to investors via a conference call Thursday, before pricing Friday.
| Issuer: | Service Corp. International
|
| Amount: | $300 million (face), $297.009 million (proceeds)
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| Security description: | Senior notes
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| Maturity: | June 15, 2017
|
| Bookrunning managers: | Merrill Lynch & Co., JP Morgan (joint)
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| Co-managers: | Banc of America Securities, Lehman Brothers, Raymond James
|
| Coupon: | 7%
|
| Price: | 99.003
|
| Yield: | 7 1/8%
|
| Price Talk: | 7 1/8% area
|
| Spread: | 312 basis points
|
| Call: | Non-callable for life; make-whole call at 50 basis points over Treasuries
|
| Settlement: | June 15 (T+3)
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
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