TREVOSE, Pa., June 18, 2018 (GLOBE NEWSWIRE) -- StoneMor Partners L.P. (NYSE:STON), a leading owner and operator of cemeteries and funeral homes, today announced that it has secured an amendment to its credit agreement that extends the deadline for delivering the Partnership’s audited financial statements for the year ended December 31, 2017 to June 30, 2018, with the Partnership being required to deliver the unaudited financial statements for the quarter ended March 31, 2018 no later than 60 days after the date on which the Partnership delivers the audited 2017 financial statements, and for the quarter ending June 30, 2018 no later than 105 days after the Partnership delivers the audited 2017 financial statements.

Leo Pound, Interim Chief Executive Officer of StoneMor commented, “Our amended credit agreement is the result of significant collaboration with our lenders to meet their desire to utilize more GAAP-based metrics, and we are pleased with the result. StoneMor has previously stated its commitment to operating within the four corners of its balance sheet and to deemphasize the use of non-GAAP financial measures. Historically, the Consolidated Leverage Ratios we reported have included non-GAAP financial measures and unsecured debt unrelated to the credit facility. Working with our lenders, our new Consolidated Secured Net Leverage Ratio is calculated primarily using GAAP financial measures, including specific GAAP-based cash flow adjustments, and uses primarily our senior bank facility. The Partnership and its lenders mutually agreed on the new covenant metrics to more clearly reflect the cash flows and relevant debt used to measure its leverage ratio. We believe this creates a cleaner, more transparent view of our leverage covenant. We appreciate our lenders continued support.”

Under the terms of the amended credit agreement, effective June 12, 2018, the credit facility:

• Increases the Partnership’s maximum leverage ratio, which is now a Consolidated Secured Net Leverage Ratio, from 4.25:1.00 to 5.75:1.00 through September 30, 2018, after which it reduces to 5.50:1.00 through December 31, 2018, to 5.00:1.00 for periods ending in the year ending December 31, 2019 and to 4.50:1.00 for periods ending in the year ending December 31, 2020;
• Decreases the revolving credit commitment from $200 million to $175 million while increasing the interest rate by 0.50%;
• Reduces the fixed charge coverage ratio from 1.2x to 1.0x in 2018 and 1.1x in 2019 and eliminates the consolidated debt service coverage ratio;
• Establishes limitations on incurring additional unsecured indebtedness and using subordinated debt to fund certain acquisitions; and
• The Partnership will continue to restrict distributions to partners until the Consolidated Leverage Ratio (which includes the effect of unsecured indebtedness, of which there was approximately $173.5 million outstanding at March 31, 2018) is not greater than 7.50:1.00 and there is at least $25.0 million of availability under the revolving credit agreement.

The increase in the maximum CSNLR from 4.25 to 5.75 is primarily due to the change in the way the ratio is calculated, relying mostly on GAAP financial measures, as mentioned above. The revised consolidated secured net leverage and fixed charge coverage ratios provide StoneMor with financial flexibility while the lower total commitment will reduce fees on capacity the Partnership did not intend to use. It is anticipated that any future growth acquisitions will either be funded through equity issuances by the Partnership or completed by the general partner.

The Partnership will be filing a report on Form 8-K with the United States Securities and Exchange Commission (“SEC”) that will include as an exhibit the full text of the amendment as well as a more detailed analysis of the changes implemented thereby.

About StoneMor Partners L.P.

StoneMor Partners L.P., headquartered in Trevose, Pennsylvania, is an owner and operator of cemeteries and funeral homes in the United States, with 316 cemeteries and 93 funeral homes in 27 states and Puerto Rico.

StoneMor is the only publicly traded death care company structured as a partnership. StoneMor’s cemetery products and services, which are sold on both a pre-need (before death) and at-need (at death) basis, include: burial lots, lawn and mausoleum crypts, burial vaults, caskets, memorials, and all services which provide for the installation of this merchandise. For additional information about StoneMor Partners L.P., please visit StoneMor’s website, and the investors section, at http://www.stonemor.com.