Carriage Services Announces New $300 Million Credit Facility, Expanding Liquidity and Enhancing Strategic Flexibility

The agreement adds $50 million in committed borrowing capacity and improves commitment-fee pricing across most leverage tiers.

Rhea-AI Summary

Carriage Services (CSV) closed a new $300 million senior secured revolving credit facility, replacing its existing facility and expanding committed borrowing capacity.

The facility replaces a $250 million agreement, adding $50 million in capacity. Its stated maturity is September 30, 2031, versus July 31, 2029 previously, subject to a provision that can bring maturity forward tied to its 4.25% senior notes due 2029. Carriage expects an approximately 50-basis-point reduction in its effective borrowing margin as total net leverage falls below 4.0x. Commitment-fee pricing improves across most leverage tiers. The agreement adds covenant flexibility for qualifying acquisitions while retaining a maximum leverage ratio of 5.00x and minimum fixed-charge coverage ratio of 1.20x.

5 points · 0 major

PositiveiHow this balance works

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0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointCommitted borrowing capacity increased by $50 million, from $250 million to $300 million. 10% of market cap
• Minor pointStated maturity extends to September 30, 2031, from July 31, 2029.
• Minor point. Forward-looking: it has not happened yet and may not happen.Carriage expects approximately 50 basis points lower effective borrowing margin as total net leverage declines below 4.0x.
• Minor pointCommitment-fee pricing improves across most leverage tiers.
• Minor pointQualifying acquisitions receive additional covenant flexibility.

Negative

• Minor pointSpringing maturity can bring the maturity forward under a provision tied to 4.25% senior notes due 2029.
• Minor pointFacility obligations carry subsidiary guarantees and first-priority liens on substantially all company and guarantor assets.
• Minor pointFinancial covenants retain maximum leverage of 5.00x and minimum fixed-charge coverage of 1.20x.

News Explained

The facility’s obligations are guaranteed by certain wholly owned subsidiaries, and it is secured by a first-priority lien on substantially all assets of Carriage Services and those guarantors.

Key Figures

Revolving credit capacity: $300 million Capacity increase: $50 million Stated maturity: September 30, 2031 +4 more

Revolving credit capacity

$300 million

New senior secured facility

Capacity increase

$50 million

Increase over the previous $250 million facility

Stated maturity

September 30, 2031

Subject to a springing-maturity provision tied to senior notes due 2029

Term SOFR margin

1.25% to 2.00%

Margin above Term Secured Overnight Financing Rate; depends on total net leverage

Alternate base rate margin

0.25% to 1.00%

Margin above alternate base rate; depends on total net leverage

Maximum leverage ratio

5.00x

Baseline covenant maintained under the new facility

Minimum fixed-charge coverage ratio

1.20x

Baseline covenant maintained under the new facility

Historical Context

1 past event · Latest: Aug 05

1 event

1. Aug 05

   Q2 earnings

   24h Move

   -10.6%

   Reported 4.0x leverage, relevant to the new facility's leverage-based pricing tiers.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured revolving credit facility, springing-maturity provision, term secured overnight financing rate, first-priority lien, +1 more

5 terms

senior secured revolving credit facility financial

"closing of a new $300 million senior secured revolving credit facility"

A senior secured revolving credit facility is a multi‑use bank lending line that a company can draw, repay and redraw as needed, backed by specific assets and ranked first in repayment order if the company defaults. Think of it like a collateralized credit card that gives flexible short‑term cash while lenders hold priority to recover their money; investors watch it because it affects a company’s liquidity, borrowing cost, and who gets paid first in financial distress.

springing-maturity provision financial

"subject to a customary springing-maturity provision tied to the Company’s"

A springing-maturity provision is a clause in a debt or financing contract that causes the loan or security’s maturity date to change or the obligation to become immediately due and payable when a specified trigger event occurs (for example default, bankruptcy, a covenant breach, or a change of control). The exact triggers and whether the provision accelerates repayment, shortens or extends the maturity, or converts the instrument into a different form are set by the contract; until a trigger happens the original maturity terms remain in effect.

term secured overnight financing rate financial

"bear interest at the Term Secured Overnight Financing Rate plus 1.25%"

Term secured overnight financing rate (Term SOFR) is a forward-looking interest rate that estimates the expected average cost of borrowing cash for a specified future period (for example, one or three months) using overnight, collateralized repurchase (repo) transactions backed by U.S. Treasury securities. Unlike the overnight SOFR, which reflects actual transactions that settled that day, Term SOFR is derived from derivatives and market-implied forward rates to produce a single quoted rate for the upcoming term and is used in contracts that require a known rate at the start of the period rather than a rate compounded in arrears.

first-priority lien financial

"secured by a first-priority lien on substantially all of the assets"

A first-priority lien is a legal claim that gives one lender or creditor the top spot to seize and sell specified assets if a borrower fails to pay. For investors, it matters because being first in line usually means a higher chance of recovering money after a default, lowering risk compared with holders who are behind in the queue — like a person cutting to the front of a checkout line for payment from the same pile of goods.

fixed-charge coverage ratio financial

"minimum fixed-charge coverage ratio of 1.20x"

A fixed-charge coverage ratio measures a company's ability to pay recurring, contractual costs such as interest, lease payments and preferred dividends from its operating earnings. Think of it like a household checking whether paychecks cover mortgage, rent and car payments each month; a higher ratio means more cushion against missed payments and lower default risk. Investors use it to judge creditworthiness, assess borrowing risk and compare financial stability across firms.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Sept. 30, 2026 (GLOBE NEWSWIRE) -- Carriage Services, Inc. (NYSE: CSV) (“Carriage” or the “Company”), a leading provider of funeral and cemetery services and merchandise in the United States, today announced the closing of a new $300 million senior secured revolving credit facility (the “New Facility”).

The New Facility replaces Carriage’s existing $250 million senior secured revolving credit facility (the “Previous Facility”), increasing committed borrowing capacity by $50 million.

The New Facility has a stated maturity of September 30, 2031, subject to a customary springing-maturity provision tied to the Company’s 4.25% senior notes due 2029. It replaces the Company’s Previous Facility, which was scheduled to mature on July 31, 2029, and included a springing-maturity provision.

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% and 1.00%, at the Company’s election, depending on the Company’s total net leverage ratio at the time of the applicable borrowing.

Based on the Company’s current leverage level, 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 New Facility also provides improved commitment-fee pricing across most leverage tiers, which is expected to meaningfully lower the Company’s cost of capital, enhance expected returns on incremental growth investments, and support a disciplined balance sheet.

The Company’s obligations under the New Facility are guaranteed by certain wholly owned subsidiaries and secured by a first-priority lien on substantially all of the assets of the Company and of the subsidiary guarantors.

The New Facility provides additional flexibility to support working capital, capital expenditures, strategic acquisitions, refinancing activities and other general corporate purposes. It also includes additional covenant flexibility for qualifying acquisitions while maintaining the Company’s baseline maximum leverage ratio of 5.00x and minimum fixed-charge coverage ratio of 1.20x.

“The closing of our new credit facility represents another important step in strengthening Carriage’s capital structure and advancing the Company’s long-term growth strategy,” said Carlos Quezada, Vice Chairman and Chief Executive Officer of Carriage Services. “The increased capacity, lowered costs, and enhanced flexibility support our ability to invest in our premier businesses and pursue attractive acquisition opportunities while maintaining a disciplined and balanced approach to capital allocation.”

John Enwright, Senior Vice President, Chief Financial Officer and Treasurer, added, “We are pleased to have proactively completed this facility with the strong support of our new and existing lending partners. The new agreement increases our committed capacity, extends our stated maturity profile and reduces borrowing spreads across the pricing grid. It also provides greater flexibility to execute our growth and capital-allocation priorities while preserving the financial discipline that remains central to our strategy.”

JPMorgan Chase Bank, N.A. serves as Administrative Agent and acted as Lead Left Bookrunner and Lead Left Arranger. Truist Bank and Regions Bank also acted as Joint Bookrunners, Joint Lead Arrangers and Co-Syndication Agents.

Additional information regarding the New Facility will be included in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

About Carriage Services
Carriage Services is a leading provider of funeral and cemetery services and merchandise in the United States. As of June 30, 2026, Carriage operates 155 funeral homes in 24 states and 28 cemeteries in 9 states. Carriage is dedicated to delivering premier experiences through innovation, partnership, and elevated service.

For more information, please contact us at investorrelations@carriageservices.com.

Cautionary Statement

Certain statements made herein or elsewhere by, or on behalf of, Carriage (the "Company") that are not historical facts are intended to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions that the Company believes are reasonable; however, many important factors, as discussed under "Forward-Looking Statements and Cautionary Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and in the Company’s Quarterly Reports on Form 10-Q, could cause the Company's results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of, the Company. The Company assumes no obligation to update or publicly release any revisions to forward-looking statements made herein or any other forward-looking statements made by, or on behalf of, the Company. A copy of the Company's Annual Report on Form 10-K, the Company's Quarterly Reports on Form 10-Q, and other information about the Company and news releases, are available at https://www.carriageservices.com.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much borrowing capacity does Carriage Services' new credit facility provide?

The new facility provides $300 million in committed revolving borrowing capacity. It replaces a $250 million facility, increasing capacity by $50 million.

When does Carriage Services' new credit facility mature?

The new facility has a stated maturity of September 30, 2031, subject to a provision that can bring maturity forward tied to the company's 4.25% senior notes due 2029. The previous facility was scheduled to mature on July 31, 2029.

How is interest determined on Carriage Services' new credit facility?

Borrowings can bear interest at the Term Secured Overnight Financing Rate plus 1.25% to 2.00%, with the margin depending on total net leverage at the time of borrowing. The company can alternatively elect an alternate-base-rate option.

What collateral backs Carriage Services' new credit facility?

The facility is secured by a first-priority lien on substantially all assets of Carriage Services and its subsidiary guarantors. Certain wholly owned subsidiaries guarantee the company's obligations under the facility.