SCI signs 2030 senior credit deal with $2.5B in facilities

Rhea-AI Filing Summary

Service Corporation International entered into a new senior unsecured credit agreement providing a $750 million Term Loan A and a $1.75 billion revolving credit facility, both maturing in November 2030. The debt is guaranteed by the company’s current and future domestic subsidiaries, with certain exclusions. Borrowings can bear interest based on an alternate base rate, Term SOFR, or an overnight risk-free rate, with applicable margins ranging from 0.25% to 1.00% for base-rate loans and 1.25% to 2.00% for Term SOFR or RFR loans, depending on SCI’s leverage ratio. The agreement includes customary fees and both affirmative and negative covenants, including a maximum leverage ratio of 5.00 to 1.00, which can temporarily increase to 5.50 to 1.00 following a qualified material acquisition.

Insights

Credit and capital structure analyst

SCI secures large, long-dated credit facilities with leverage-based covenants.

Service Corporation International has arranged a senior unsecured Term Loan A of $750 million and a revolving credit facility of up to $1.75 billion, both maturing in November 2030. This structure gives the company committed access to term funding plus flexible revolving borrowings under a single credit agreement.

Interest costs are linked to benchmark rates (alternate base rate, Term SOFR, or RFR) plus margins that vary with SCI’s leverage. The applicable margins range from 0.25% to 1.00% for base-rate loans and 1.25% to 2.00% for Term SOFR or RFR loans, tying borrowing costs directly to balance sheet strength.

The facilities are guaranteed by current and future domestic subsidiaries, increasing lender protection. Key covenants include a maximum leverage ratio of 5.00 to 1.00, with a step-up to 5.50 to 1.00 for three consecutive fiscal quarters after a qualified material acquisition. Actual financial flexibility will depend on how close SCI operates to these leverage limits in future reporting periods.

0000089089false00000890892025-11-202025-11-20

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 20, 2025

Service Corporation International

(Exact name of registrant as specified in its charter)

Texas			1-6402-1			74-1488375
(State or other jurisdiction of incorporation)			(Commission File Number)			(I.R.S. Employer Identification No.)

1929 Allen Parkway			Houston			Texas			77019
(Address of principal executive offices)									(Zip Code)

Registrant's telephone number, including area code			(713)			522-5141
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock ($1 par value)

SCI

New York Stock Exchange

Item 1.01 Entry into a Material Definitive Agreement

On November 20, 2025, Service Corporation International (the “Company”) entered into a new senior unsecured credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other financial institutions, as lenders, providing for a $750 million senior term loan facility, maturing in November 2030 (the “Term Loan A”), and a revolving credit facility providing for borrowings of up to $1.75 billion, with commitments expiring and loans maturing in November 2030 (the “Revolving Facility” and, together with the Term Loan A, the “Credit Agreement”).

All of the indebtedness outstanding under the Credit Agreement is guaranteed by the Company’s current and future domestic subsidiaries (other than certain excluded subsidiaries).

The loans under the Credit Agreement will bear interest per annum, at the Company’s election, equal to:

•an alternate base rate plus the applicable rate for such loans. The alternate base rate is the greatest of (a) the NYFRB Rate plus 1/2 of 1% per annum, (b) the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the United States and (c) the Term SOFR for a one-month interest period beginning on such day plus 1.00% per annum;

•Term SOFR for the selected interest period plus the applicable rate for such loans; or

•RFR plus the applicable rate for such loans.

The applicable rate ranges from 1.25% to 2.00% for borrowings based on Term SOFR or RFR and 0.25% to 1.00% for borrowings based on the alternate base rate depending on the Company’s leverage ratio.

Customary fees are payable in respect of the Credit Agreement, including letter of credit fees and commitment fees.

The Credit Agreement includes a number of negative covenants that, among other things, limit or restrict the ability of the Company and its other subsidiaries (including the guarantors) to, subject to certain exceptions, incur additional indebtedness (including guarantees), grant liens, make investments, make dividends or distributions with respect to the Company’s capital stock, make prepayments on other indebtedness, engage in mergers or change the nature of the business of the Company or its other subsidiaries (including the guarantors). In addition, the Company is required to comply with a leverage ratio of 5.00 to 1.00 (with a step up to 5.50 to 1.00 for the three consecutive fiscal quarters ended immediately following the consummation of a qualified material acquisition).

The Credit Agreement also contains certain affirmative covenants, including financial and other reporting requirements, applicable to the Company and its other subsidiaries (including the guarantors).

A copy of the Credit Agreement is attached as Exhibit 10.1 and is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

The information provided in Item 1.01 of this Form 8-K is hereby incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits

(d) The following exhibits are included with this report

Exhibit No.			Description
10.1			Credit Agreement, dated November 20, 2025, between Service Corporation International, JPMorgan Chase Bank, N.A., as administrative agent, and certain other financial institutions, as lenders party thereto

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

November 20, 2025                        Service Corporation International

By: /s/ ERIC D. TANZBERGER

Eric D. Tanzberger

Executive Vice President

Chief Financial Officer

FAQ

What new credit facilities did SCI (SCI) enter into?

Service Corporation International entered into a new senior unsecured credit agreement that includes a $750 million Term Loan A and a $1.75 billion revolving credit facility, both maturing in November 2030.

What are the interest rate terms on SCI's new credit agreement?

Loans under the agreement bear interest at the company’s election based on an alternate base rate, Term SOFR, or an RFR, plus an applicable margin. The margin ranges from 1.25% to 2.00% for Term SOFR or RFR loans and 0.25% to 1.00% for base-rate loans, depending on SCI’s leverage ratio.

When do SCI's new Term Loan A and revolving credit facility mature?

Both the $750 million Term Loan A and the $1.75 billion revolving credit facility under the new credit agreement mature in November 2030, with the revolving commitments expiring at that time.

Who guarantees the indebtedness under SCI's new credit agreement?

All indebtedness outstanding under the credit agreement is guaranteed by SCI’s current and future domestic subsidiaries, other than certain excluded subsidiaries.

What financial covenants apply to SCI under the new credit agreement?

The agreement requires SCI to comply with a maximum leverage ratio of 5.00 to 1.00, with a step up to 5.50 to 1.00 for the three consecutive fiscal quarters immediately following the consummation of a qualified material acquisition.

What restrictions do the negative covenants place on SCI and its subsidiaries?

The negative covenants limit or restrict SCI and its subsidiaries from, among other things, incurring additional indebtedness, granting liens, making certain investments, paying dividends or distributions on capital stock, prepaying other debt, engaging in mergers, or changing the nature of their business, subject to specified exceptions.