Monitor Q3 2026 earnings for leverage ratio and progress toward the new 3.0x-3.5x target range. Watch for any refinancing announcements regarding the $400M 4.25% Senior Notes due May 2029, as the springing maturity provision creates a catalyst by February 2029.
Price Chart
Executive Summary
Carriage Services entered into a new $300 million senior secured revolving credit facility, replacing its existing $250 million facility. The company also terminated its $100 million at-the-market equity offering program and announced a new capital allocation framework prioritizing debt reduction, selective acquisitions, and share repurchases. The new facility extends maturity to 2031 (or February 2029 if senior notes are not refinanced) and offers lower borrowing costs.
Key Financial Metrics
Key Facts
- New $300 million senior secured revolving credit facility replaces $250 million prior facility, increasing capacity by $50 million.
- Facility matures September 30, 2031, with a springing maturity to February 14, 2029 if $400M 4.25% Senior Notes due 2029 are not refinanced by February 13, 2029.
- Borrowing spreads reduced by ~50 bps at current leverage; pricing grid ranges from SOFR+1.25% to SOFR+2.00%.
- Company terminated its $100 million at-the-market equity offering program effective October 4, 2026.
- New capital allocation framework lowers target leverage ratio range from 3.5x-4.0x to 3.0x-3.5x.
- Financial covenants: max Total Net Leverage Ratio of 5.00x (5.50x during Adjusted Covenant Period) and min Fixed Charge Coverage Ratio of 1.20x.
- Facility includes an accordion feature allowing up to $100 million in additional commitments.
- Obligations are secured by first-priority liens on substantially all assets of the company and subsidiary guarantors.
Financial Impact
New $300M facility increases borrowing capacity by $50M vs prior $250M facility. Borrowing spreads reduced by approximately 50 basis points at current leverage levels. Commitment fee pricing improved across most leverage tiers. ATM program termination removes potential future equity dilution.
Risk Factors
- Springing maturity to February 2029 if Senior Notes are not refinanced creates refinancing risk.
- Higher leverage from acquisition activity could increase borrowing costs under the pricing grid.
- Share repurchases under new framework could increase leverage if not balanced with debt reduction.
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-112380 |
| Document: tm2626597d1_8k.htm | 0001104659-26-112380 |
| Document: tm2626597d1_ex99-2.htm | 0001104659-26-112380 |
| Document: tm2626597d1_ex99-1.htm | 0001104659-26-112380 |
| Document: 0001104659-26-112380-index-headers.html | 0001104659-26-112380 |
| Document: 0001104659-26-112380-index.html | 0001104659-26-112380 |
| Document: 0001104659-26-112380.txt | 0001104659-26-112380 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | Press Release | $35.11 | awaiting T+5 | — | $35.82 (+2.02%) |
Oct 21, 2026 6d ago | SC 13G | $35.68 | awaiting T+5 | — | $35.82 (+0.39%) |
Oct 15, 2026 12d ago | Press Release | $36.20 $35.41 | ▼ −2.18% | ▼ −1.75% | $35.82 (−1.05%) |
Oct 5, 2026 22d ago | 8-K | $32.89 $34.61 | ▲ +5.23% | ▲ +5.37% | $35.82 (+8.91%) |
Sep 30, 2026 27d ago | 8-K | $31.79 $33.73 | ▲ +6.10% | ▲ +4.80% | $35.82 (+12.68%) |
Sep 30, 2026 27d ago | Press Release | $31.79 $33.73 | ▲ +6.10% | ▲ +4.80% | $35.82 (+12.68%) |
Jul 22, 2026 13w ago | Press Release | $37.77 | awaiting T+5 | — | $35.82 (−5.16%) |
May 27, 2026 21w ago | Press Release | $42.49 $37.32 | ▼ −12.17% | ▼ −12.12% | $35.82 (−15.70%) |
May 6, 2026 24w ago | 8-K | $44.60 $43.11 | ▲ +3.34% | ▲ +4.85% | $35.82 (+19.69%) |
May 6, 2026 24w ago | Press Release | $44.60 $43.11 | ▼ −3.34% | ▼ −4.85% | $35.82 (−19.69%) |
US Market Status
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