Houston-based Service Corporation International last week tapped J.P. Morgan Chase to lead a $200 million revolving credit facility for the company. Jeffrey Curtis, cfo, said the company is looking to close the single-tranche credit by the end of this month and indications thus far show that pricing is expected at LIBOR plus 3%. He declined to name other banks participating on the loan. "We are shooting for $200 million but we would settle for less or accept more," he said. Curtis declined to elaborate on whether or not he expects the credit to be oversubscribed. J.P. Morgan Chase did not return calls.
Curtis said the loan will be used for general corporate purposes. The company has a five-year, fully drawn $300 million revolving credit it termed out last year and a five-year, $700 million partially drawn multi-currency revolver. Both are priced at LIBOR plus 11⁄2%. Curtis explained that the new secured "dry powder" facility will be used to issue letters of credit and is expected to price higher as the other loan was unsecured. Curtis said the company is still looking to reduce its debt through the sale of assets as it has done for the last couple of years. In the last 15 months, the company sold roughly $500 million in assets to reduce debt. The company is a provider of funeral and cemetery services.