Carriage Services expands Revolving Credit Facility

October 12, 2026/Business, Finance/

At the end of September public company funeral home and cemetery consolidator and operator Carriage Services made some moves that they hope will enhance their long-term flexibility.

In essence, Carriage Services made this announcement that explains that they have upped their capacity for their Revolving Credit Facility from $250 million to a $300 million capacity from a new bank syndicate led by JP Morgan Chase.

Carlos Quezada, Vice-Chairman and CEO of Carriage Services made this prepared comment in the press release, “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. 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.”

In another press release issued the same day by Carriage Services the company announced their “Capital Allocation Framework” to support the execution of the company’s “2030 Vision”. That press release acknowledges that Carriage Services is “terminating its existing $100 million at-the-market equity offering (“ATM”) program, effective October 4, 2026.”

It’s my opinion that with that decision Carriage Services has realized it is probably more important to fund strategic operations needs and reduce debt rather than messing with equity ownership and sell company stock to raise capital for acquisitions.

In that press release that you can read here, Quezada made his prepared comment, “Our responsibility is not simply to grow Carriage. It is to create sustainable, long-term value on a per-share basis. With the completion of our new credit facility, we have strengthened our liquidity and positioned Carriage to operate with greater financial flexibility. . . “

The new Revolving Credit Facility not only increases this type of credit for Carriage Services by $50 million from their present facility but it pushes the maturity date out to 2031 instead of 2029. The new $300 million credit facility does, however, contain a spring-forward maturity provision that is tied to the company’s $400 million 4.25% Senior Notes set for a 2029 maturity.

In the “Capital Allocation Framework” press release Carriage Services shares a philosophy in what they term “A Disciplined Capital Allocation Hierarchy” with this message:

“Carriage’s capital allocation decisions will be guided by a fundamental objective: creating sustainable long-term value per share while maintaining a strong and appropriately capitalized balance sheet.

The Company’s first priority is to fund the operating and strategic needs of its existing businesses. Beyond those investments, Carriage will balance debt reduction, selective acquisitions and share repurchases based on their expected returns, strategic value and impact on long-term value per share.

The increased capacity under the new credit facility is a source of financial flexibility, not a change in Carriage’s leverage philosophy. The Company remains committed to disciplined leverage and strengthening its credit profile.

Share repurchases and acquisitions will therefore be balanced against Carriage’s leverage objectives and its priority of strengthening the Company’s financial position well ahead of the maturity of its Senior Notes in May 2029.” (Bolded by Carriage Services)

The press release shares more detailed and specific information on that philosophy.

Tom Anderson
Funeral Director Daily

Funeral Director Daily take: I think you might see companies look at their debt structure in the near future to make sure that they are ahead of the game that may be coming. In my opinion, it is always great to have open commitments to take on debt before you need the money. It is my opinion that is part of the posturing of Carriage Services in not knowing what lies ahead.

First of all, interest rates may rise again soon. We are now at a point that we have reached as high as 7.30% on 30-year mortgages and have a Federal Funds Target Rate of 3.75-4.00%. And, there are two FOMC meetings coming up before the end of the year where there is an argument that rates could be raised again – possibly at both meetings.

Secondly, there is no doubt that consumer Death Care has really reached an inflection point. I don’t think that there is anybody in the business who thinks we are going back to a majority of services being traditional with caskets, vaults, services, and burials. As a matter of fact, there are some who predict that “traditional burial services” will be niche with a percentage of only 15% of all services by 2035.

And don’t think that banks have not seen those predictions also. It’s conceiveable, that because of that, banks may be looking at reining in the amounts that they have in outstanding in loans to traditional funeral homes as the business mix of those funeral homes continues to change. The secret for many Death Care businesses may be to have open credit that they don’t need today but have on the line in reserve that they might need while their business adjusts to the new normal of funeral service.

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