Service Corp. completes $150M debt offering

Service Corp. completes offering of $150M in senior notes

• On 1:17 pm EST, Tuesday November 10, 2009

HOUSTON (AP) -- Funeral home and cemetery operator Service Corp. International said Tuesday that it had successfully completed its previously announced $150 million debt offering.

Net proceeds from the 8 percent senior notes due 2021 will be combined with cash to fund the purchase of Keystone North America Inc.

If the acquisition isn't completed by June 30, 2010, Service Corporation will redeem the notes. The notes may also be redeemed at any time prior to June 30, 2010, if the company believes that the acquisition will not be consummated by that date.

Houston-based Service Corporation owns and operates 1,250 funeral homes and 364 cemeteries in 43 states, eight Canadian provinces, the District of Columbia and Puerto Rico.

Toronto-based Keystone North America operates 195 funeral homes and 15 cemeteries across the United States and the Canadian province of Ontario, primarily in suburban and rural areas.

On Oct. 15, the companies announced an agreement for Service Corporation to buy Keystone North America for $8 per share, a 34 percent premium to Keystone's 20-day average share price.

Service Corporation shares fell 2 cents to $7.60 per share in afternoon trading.

Keystone North America shares were unchanged at $7.84 on the Toronto exchange.

Buzz up!