Service Corporation Announces $2.175 Billion Unsecured Revolving Credit Facility Maturing in 2028
January 13, 2023
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Service Corporation ($NYSE:SCI), one of the leading providers of deathcare products and services in North America, recently announced the launch of a .875 billion unsecured revolving credit facility maturing in 2028. This facility is valued at $2.175 billion and will be used to refinance the company’s existing debt and fund its future growth initiatives. The credit facility is a five-year term loan which can be extended up to five years if certain conditions are met. This feature gives the company the flexibility to react quickly to any financial opportunities that may arise. The proceeds from this facility will be used to refinance the existing debt and fund future growth initiatives.
Service Corporation has been focusing on expanding its presence worldwide, as well as investing in new technologies to provide better services for its customers. This new facility demonstrates Service Corporation’s commitment to meeting the needs of its customers while also ensuring its financial health and stability in the long term. With this new credit facility in place, the company is well-positioned to take advantage of any future opportunities that may present themselves.
Market Price
The news was met with mostly positive coverage, as evidenced by the stock’s performance that same day. Service Corporation opened at $71.2, and closed at $71.4, 0.9% higher than the previous closing price of 70.8. The credit facility could potentially provide Service Corporation with financial flexibility and liquidity, allowing the company to pursue its long-term strategic objectives. The facility can be used for general corporate purposes, including working capital, capital expenditures, investments, debt repayment, and acquisitions. The facility may also be used for other business activities, such as repurchasing outstanding stock or refinancing existing debt.
The facility is subject to certain conditions and covenants that Service Corporation must meet in order to draw down on the funds, including minimum liquidity requirements, maximum leverage levels, and other financial obligations. Such conditions are standard for similar credit facilities and allow Service Corporation to operate in a responsible manner. It also demonstrates Service Corporation’s commitment to providing its shareholders with financial stability and long-term value. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Service Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 4.12k | 679.53 | 19.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Service Corporation. More…
| Operations | Investing | Financing |
| 845.69 | -478.45 | -593.57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Service Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.49k | 12.81k | 11.63 |
Key Ratios Snapshot
Some of the financial key ratios for Service Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.8% | 19.0% | 28.9% |
| FCF Margin | ROE | ROA |
| 11.3% | 37.6% | 4.6% |
VI Analysis
Investors looking for a reliable dividend payer may be interested in SERVICE CORPORATION as it is strong in dividend. The company’s fundamentals reflect its long term potential and the VI Star Chart shows it has medium growth, profitability, and weak asset. SERVICE CORPORATION also has a high health score of 7/10 which indicates it is capable of riding out any crisis without the risk of bankruptcy. When it comes to its growth potential, SERVICE CORPORATION is classified as a ‘Rhino’, meaning it has achieved moderate revenue or earnings growth. This makes it a good option for investors looking for a steady stream of income over long periods of time. Additionally, the company’s fundamentals suggest future stability, making it an attractive option for those looking to invest in a safe company. Overall, SERVICE CORPORATION is a good option for investors looking for a reliable dividend payer and stability. The company’s fundamentals reflect its long term potential and the VI Star Chart gives an overview of its performance in terms of growth, profitability, and assets. With its high health score of 7/10, SERVICE CORPORATION is well equipped to handle any crisis without the risk of bankruptcy. Lastly, the ‘rhino’ classification indicates moderate revenue or earnings growth, making SERVICE CORPORATION an attractive option for those looking for steady returns over the long term. More…
VI Peers
Service Corp International is the largest provider of death care services and products in North America. The company operates more than 2,000 funeral homes and crematories in the United States and Canada. LE Lavoir Ltd is a provider of funeral and cremation services in Japan. HEIAN CEREMONY SERVICE Co Ltd is a leading provider of funeral services in China.
– Park Lawn Corp ($TSX:PLC)
Park Lawn Corporation is a provider of death care products and services in North America. The Company owns and operates cemeteries, funeral homes, crematoria, burial vaults, urn gardens, memorialization products and services, and cemetery property. Park Lawn’s products and services include interment rights, such as graves, crypts or niches in cemeteries, and funeral and cremation services.
– LE Lavoir Ltd ($BSE:539814)
In 2022, the market capitalization of Lavoir Ltd was 108.86 million, with a return on equity of 1.66%. The company provides laundry and dry-cleaning services.
– HEIAN CEREMONY SERVICE Co Ltd ($TSE:2344)
The Heian Ceremony Service Co Ltd has a market capitalization of 9.16 billion as of 2022. The company has a return on equity of 4.27%. Heian Ceremony Service Co Ltd is a company that provides services for ceremonies.
Summary
Service Corporation International (SCI) has recently announced a $2.175 billion unsecured revolving credit facility maturing in 2028. This move is seen as a positive step by investors, as it provides the company with additional financial flexibility. This facility will help SCI to fund its expansion plans and provide additional liquidity for its operations.
It also demonstrates that the company is in a good financial position, with the ability to access long-term financing on favorable terms. The facility is expected to reduce the company’s cost of capital and improve its financial strength, making it an attractive investment option for investors.
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