Carriage Services Inc. Enters $300M Revolving Credit Facility

What Happened Carriage Services, Inc. (CSV) announced on September 30, 2026 that it entered into a five-year senior secured revolving credit agreement providing up to $300 million in revolving commitments (with a $100 million accordion option). The new facility, administered by JPMorgan Chase Bank, N.A., replaces and repays in full the company's prior $250 million credit agreement dated May 13, 2021, which was terminated at closing. Proceeds may be used to repay debt, for working capital and acquisitions, certain capital expenditures and general corporate purposes. The company also issued press releases announcing the credit agreement, a capital allocation framework and the termination of its $100 million at‑the‑market (ATM) equity program.

Key Details

• Size & term: $300 million revolving facility, five‑year maturity (closing September 30, 2026); accordion up to an additional $100 million subject to lender approvals.
• Pricing: Borrowings priced at either an Alternate Base Rate + Applicable Rate or Term SOFR + Applicable Rate. Applicable Rate varies by Total Net Leverage Ratio:
  • <3.0x: Alt Base +0.25% or SOFR +1.25%

  • 3.0x–<3.5x: Alt Base +0.50% or SOFR +1.50%

  • 3.5x–<4.0x: Alt Base +0.75% or SOFR +1.75%

  • 4.0x: Alt Base +1.00% or SOFR +2.00%

• Security & guarantees: Facility is secured by a first‑priority lien on substantially all personal property and a pledge of equity interests of the company and certain subsidiary guarantors; obligations are guaranteed by material domestic subsidiaries. In certain default or covenant scenarios the company may be required to grant liens on real property representing at least 50% of funeral operations.
• Covenants & financial tests: Maximum Total Net Leverage Ratio of 5.00x at each quarter end (5.50x permitted for a four‑quarter adjusted covenant period after certain material acquisitions); minimum Fixed Charge Coverage Ratio of 1.20x.
• Existing facility: The prior $250M credit agreement was repaid in full and terminated at closing. The company also ended its $100M ATM equity program per a related press release.

Why It Matters This refinancing secures committed liquidity and replaces the prior $250M facility with a larger, five‑year revolving line, giving Carriage Services flexibility to manage debt, fund operations, pursue acquisitions and invest in capital projects. Investors should note the facility is secured and contains leverage and coverage covenants that could limit some corporate actions if ratios worsen. Borrowing costs will vary with market rates (Term SOFR or Alternate Base Rate) and the company’s leverage level, so credit costs depend on future operating performance and balance‑sheet leverage. The termination of the $100M ATM program reduces a near‑term equity issuance channel, which may affect the company’s capital‑raising options going forward.