Exhibit 99.1
Service Corporation International Announces Pricing of Senior Notes Offering
HOUSTON, May 7, 2017 — Service Corporation International (NYSE: SCI) (the “Company”) announces that it has priced an underwritten public offering of $750 million aggregate principal amount of 5.125% Senior Notes due 2029. The Company expects to close the sale of the notes on May 21, 2019, subject to the satisfaction of customary closing conditions.
The Company will use net proceeds from the offering, together with cash on hand, to repurchase its $425 million 5.375% Senior Notes due 2022 pursuant to a concurrent tender offer and consent solicitation, repay outstanding borrowings under its revolving credit facility, and pay related fees and expenses.
Wells Fargo Securities is acting as the lead joint book-running manager for the offering.
The offering may be made only by means of a prospectus supplement and accompanying base prospectus. The prospectus supplement will be filed with the Securities and Exchange Commission (the “SEC”) and may be found on its website atwww.sec.gov. When available, copies of the prospectus supplement relating to the public offering may be obtained from:
Wells Fargo Securities, LLC
Attention: WFS Customer Service
608 2nd Ave S, Suite 1000
Minneapolis, MN 55402
Telephone: (800)645-9751 Opt 5
Email: wfscustomerservice@wellsfargo.com
This press release does not constitute an offer to sell, nor the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful. The notes will be offered only by means of a prospectus supplement and accompanying base prospectus. This press release does not constitute a notice of redemption with respect to the notes being redeemed.
Cautionary Statement on Forward-Looking Statements
The statements in this press release that are not historical facts are forward-looking statements made in reliance on the “safe harbor” protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as “believe,” “estimate,” “project,” “expect,” “anticipate,” or “predict,” that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by us, or on our behalf. Important factors, which could cause actual results to differ materially from those in forward-looking statements include, among others, the following:
| • | | Our affiliated trust funds own investments in securities, which are affected by market conditions that are beyond our control. |
| • | | We may be required to replenish our affiliated funeral and cemetery trust funds to meet minimum funding requirements, which would have a negative effect on our earnings and cash flow. |
| • | | Our ability to execute our strategic plan depends on many factors, some of which are beyond our control. |
| • | | Our credit agreements contain covenants that may prevent us from engaging in certain transactions. |
| • | | If we lost the ability to use surety bonding to support our preneed activities, we may be required to make material cash payments to fund certain trust funds. |
| • | | The funeral and cemetery industry is competitive. |
| • | | Increasing death benefits related to preneed contracts funded through life insurance or annuity contracts may not cover future increases in the cost of providing a price-guaranteed service. |
| • | | The financial condition of third-party insurance companies that fund our preneed contracts may impact our future revenue. |
| • | | Unfavorable results of litigation could have a material adverse impact on our financial statements. |
| • | | Unfavorable publicity could affect our reputation and business. |
| • | | If the number of deaths in our markets declines, our cash flows and revenue may decrease. |
| • | | If we are not able to respond effectively to changing consumer preferences, our market share, revenue, cash flows, and/or profitability could decrease. |
| • | | The continuing upward trend in the number of cremations performed in North America could result in lower revenue, operating profit, and cash flows. |
| • | | Our funeral and cemetery businesses are high fixed-cost businesses. |
| • | | Regulation and compliance could have a material adverse impact on our financial results. |
| • | | Cemetery burial practice claims could have a material adverse impact on our financial results. |
| • | | We use a combination of insurance, self-insurance, and large deductibles in managing our exposure to certain inherent risks; therefore, we could be exposed to unexpected costs that could negatively affect our financial performance. |
| • | | A number of years may elapse before particular tax matters, for which we have established accruals, are audited and finally resolved. |