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EXHIBIT 99.1
[SCI NEWS LETTERHEAD]
FOR IMMEDIATE RELEASE:
SERVICE CORPORATION INTERNATIONAL
ANNOUNCES AMENDMENT TO BANK CREDIT FACILITY AGREEMENTS
HOUSTON, TEXAS, December 4, 2000 . . . Service Corporation International (NYSE:
SRV), the world's largest funeral and cemetery company, today announced the
completion of an amendment to its bank credit facility agreements. The amendment
is effective as of November 14, 2000, and amends the Company's $300 million
credit facility due in June 2002 and the Company's $700 million multi-currency
revolving credit facility which also expires in June 2002.
The amendment provides the Company with the financial flexibility needed to
execute the second phase of its strategic plan which includes joint venturing
certain of its operations with strategic partners that could provide capital and
other benefits to these operations. Proceeds from investments made by strategic
partners would be used by the Company to reduce its debt.
Significant terms of the amendment include certain agreements made by the
Company to reduce commitment amounts on the credit facilities based upon net
cash proceeds generated from joint venture and asset sale transactions closed
after September 30, 2000; changes to definitions and calculations of financial
covenants related to a maximum debt-to-capitalization ratio, a minimum interest
coverage ratio and a minimum net worth requirement; limits on the amount of
Company assets that could be joint ventured or sold; and certain restrictions on
future acquisition activity without lender approval.
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COMMENTING ON THE AMENDMENT, SCI CHAIRMAN AND CHIEF EXECUTIVE OFFICER, ROBERT L.
WALTRIP, SAID:
"Under the previous terms of our credit facilities, certain transactions related
to the second phase of our strategic plan would have required approval from our
bank group prior to completing the transactions. We have worked proactively with
our bank group to execute this amendment giving us the financial flexibility
needed to complete such transactions without requiring prior approval. We are
pleased to have the support of our bank group as the Company continues to
execute its strategic plans which will result in increasing our cash flow and
reducing our debt."
The amendment to the Company's credit facilities will be filed in its entirety
with the Securities and Exchange Commission on Form 8-K.
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based on
assumptions that the Company believes are reasonable. These statements are not,
however, guarantees of future performance and actual results may differ
materially. The most important factors that may cause actual results to differ
from the Company's expectations are listed in the Company's third quarter 2000
Form 10-Q filed with the Securities and Exchange Commission. The Company assumes
no obligation to update or revise any forward-looking statements made herein or
any other forward-looking statements made by the Company.
As of September 30, 2000, SCI affiliates operated 3,755 funeral service
locations, 575 cemeteries and 203 crematoria. SCI provides funeral and cemetery
services in 20 countries on five continents.
For additional information contact:
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Investor Relations: Debbie E. Fisher - Director / Investor Relations Tel: (713) 525-9088
Eric D. Tanzberger - Vice President / Investor Relations Tel: (713) 525-7768
Assistant Corporate Controller
Media Relations: Terry Hemeyer - Managing Director / Corp. Communications Tel: (713) 525-5235
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Other Service Corporation International press releases are available through
SCI's homepage: http://www.sci-corp.com or by Company News On-Call by fax, (800)
758-5804, extension 104532, or at http://www.prnewswire.com.
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