StoneMor to redeem senior secured PIK notes via asset sale proceeds

By Marisa Wong

Los Angeles, April 13 – StoneMor Inc. said it will redeem a portion of its outstanding senior secured PIK toggle notes using proceeds from an asset sale.

Per the indenture governing the notes, StoneMor will use the first $55 million of net proceeds and 80% of the remaining net proceeds from the asset sales for the redemption, according to a press release.

StoneMor recently completed the sale of its Olivet Memorial Park, Olivet Funeral and Cremation Services and Olivet Memorial Park and Crematory assets located in Colma, Calif., to Cypress Lawn Cemetery Association for a total net purchase price of $41.4 million, consisting of $24.3 million in cash and $17.1 million in assumption of lot takedown obligations.

The company has also signed an agreement to sell the assets of its remaining California locations for $7.1 million in cash. That transaction is targeted to close in the next 60 days.

Finally, the company had sold Oakmont Memorial Park & Mortuary in January for $33 million in cash.

Based in Trevose, Pa., StoneMor Partners owns and operates cemeteries and funeral homes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.