Service Corp. says holders tender more than $200 million of 6% notes by early deadline

New York, April 14 - Service Corp. International (B1/BB-) said that holders of its 6% notes due 2005 had tendered more than $200 million principal amount of the notes - the amount the company was seeking to buy back from its holders - by the April 13 early tender deadline of its previously announced tender offer. Accordingly, Service Corp. said that it will accept notes for purchase on a pro rata basis.

The underlying tender offer for the notes continues and is scheduled to expire on April 21.

As previously announced, Service Corp., a Houston-based cemetery and funeral home operator, said on March 24 that it had begun a cash tender offer to purchase up to $150 million principal amount of its $272.451 million of outstanding 6% notes (this amount was subsequently increased to $200 million on March 30).

It initially set an early participation deadline of 5 p.m. ET on April 6 (later extended to April 13) and said the tender offer would expire at 11:59 p.m. ET on April 21, subject to possible extension.

Service Corp. said that it would offer total consideration of $1,050 per $1,000 principal amount of notes validly tendered under the offer by the early participation deadline and accepted for purchase, plus any accrued and unpaid interest on the notes up to, but not including, the date of payment. Total consideration would include a $30 per $1,000 principal amount early participation payment.

The company said holders tendering their notes after the early participation deadline but before the offer expires, and whose notes are accepted for purchase, would receive $1,020 per $1,000 principal amount plus interest but no early participation payment.

Service Corp. initially said that if more than $150 million principal amount of notes were to be validly tendered under the terms of the offer and not subsequently withdrawn, it would accept notes on a pro rata basis. This figure was subsequently raised to $200 million.

The company said it was contemplating a debt financing to ensure sufficient cash resources for the retirement of its debt, including the tender offer for the 6% notes, the potential redemption in June of its 6¾% convertible subordinated notes due 2008, and for general corporate purposes.

On March 26, Service Corp. announced plans to sell $250 million in unsecured senior notes due 2016 via a Rule 144A transaction, which were subsequently priced to yield 6¾%.

Merrill Lynch & Co. is the dealer manager for the offer (call 888 654-8637 or call collect at 212 449-4914). Requests for documentation can be addressed to the information agent, Global Bondholder Services Corp. (call toll-free at 866 873-7700; banks and brokerage firms call 212 430-3774).

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