Service Corporation International sets $800M notes offering

HOUSTON - Service Corporation International (NYSE:SCI), a leading North American funeral services provider, has announced the pricing of an $800 million public offering of 5.75% Senior Notes due in 2032. The transaction is slated for completion on September 17, 2024, pending customary closing conditions.

The company intends to utilize the net proceeds from the sale to repay existing loans under its revolving credit facility and to cover related fees and expenses. Wells Fargo Securities is the lead joint book-running manager for this offering.

The notes are being offered through a prospectus supplement and accompanying base prospectus as part of an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Interested parties can obtain these documents from Wells Fargo Securities when available.

This press release contains forward-looking statements that are subject to risks and uncertainties which could cause actual results to differ materially from those projected. Factors that may affect the company's performance include market conditions, regulatory changes, and economic fluctuations, among others.

Service Corporation International, based in Houston, Texas, offers funeral, cemetery, and cremation services, including pre-arranged funeral planning. As of June 30, 2024, the company operates 1,490 funeral service locations and 492 cemeteries across North America. The Dignity Memorial® brand is part of SCI's network, known for its professional and compassionate services.

This news article is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the described securities.

In other recent news, Service Corporation International (SCI) announced plans to offer $800 million in senior notes. The net proceeds from the sale will be used to repay outstanding loans under its revolving credit facility. Wells Fargo Securities will manage the offering. On the earnings front, SCI reported a slight decrease in Q2 2024 earnings per share (EPS) to $0.79, attributed to a 2.7% fall in funeral volumes. Despite this, the company maintains a positive outlook, projecting revenue and margin growth in the latter half of 2024, and a return to EPS growth in 2025. SCI also declared a quarterly cash dividend of $0.30 per share. These developments highlight SCI's strategic approach to financial management and growth within its industry.

InvestingPro Insights

As Service Corporation International (NYSE:SCI) navigates the financial markets with its latest public offering of senior notes, investors and analysts are closely monitoring the company's performance metrics and future outlook. According to recent data from InvestingPro, SCI has a market capitalization of $11.55 billion and is trading at a price-to-earnings (P/E) ratio of 23.04, which adjusts slightly to 22.78 when looking at the last twelve months as of Q2 2024. This valuation comes at a time when the company's shares are trading near their 52-week high, with the price reaching 99.38% of this peak.

InvestingPro Tips highlight that SCI has a strong track record of dividend growth, having raised its dividend for 10 consecutive years and maintained payments for 20 consecutive years. This consistency is reflected in the company's dividend growth over the last twelve months, which stands at 11.11%. These figures are particularly relevant for income-focused investors considering the stability and growth of dividend payments amidst current market offerings.

However, some caution may be advised as analysts have revised their earnings estimates downwards for the upcoming period and the company's short-term obligations exceed its liquid assets. Additionally, SCI is trading at a high Price/Book multiple of 7.5. Investors interested in a deeper analysis can explore more than 8 additional InvestingPro Tips, providing a more comprehensive view of SCI's financial health and market position.

For those considering an investment in Service Corporation International, further insights are available at InvestingPro.

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