Carriage Services closes $300M credit facility, replacing $250M line

Carriage Services, Inc. (NYSE: CSV) announced the closing of a new $300 million senior secured revolving credit facility, replacing its previous $250 million facility and increasing committed borrowing capacity by $50 million.

The new facility carries a stated maturity of September 30, 2031, subject to a springing-maturity provision tied to the company's 4.25% senior notes due 2029. The previous facility had been scheduled to mature on July 31, 2029.

Borrowings under the new facility bear interest at the Term Secured Overnight Financing Rate plus 1.25% to 2.00%, or an alternate base rate plus 0.25% to 1.00%, depending on the company's total net leverage ratio at the time of borrowing.

The company said the new facility is expected to reduce the effective borrowing margin by approximately 50 basis points as total net leverage declines below 4.0x. The facility maintains a maximum leverage ratio of 5.00x and a minimum fixed-charge coverage ratio of 1.20x.

The facility is guaranteed by certain wholly owned subsidiaries and secured by a first-priority lien on substantially all assets of the company and subsidiary guarantors.

JPMorgan Chase Bank, N.A. served as administrative agent and lead left bookrunner and arranger. Truist Bank and Regions Bank acted as joint bookrunners, joint lead arrangers, and co-syndication agents.

Carriage Services operates 155 funeral homes in 24 states and 28 cemeteries in 9 states, according to the company's press release.

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