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Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Debt DEBT
Our long-term debt consists of the following (in thousands):
September 30, 2026December 31, 2025
Senior Notes
$397,882 $397,319 
Credit Facility
113,048 125,435 
Acquisition debt, net of current portion
5,274 5,581 
Total Long-term debt
$516,204 $528,335 
Senior Notes
The carrying value of our 4.25% senior notes due 2029 (the “Senior Notes”) is reflected on our Condensed Consolidated Balance Sheets as follows (in thousands):
September 30, 2026December 31, 2025
Principal amount$400,000 $400,000 
Debt discount, net of accumulated amortization of $2,850 and $2,411, respectively
(1,651)(2,089)
Debt issuance costs, net of accumulated amortization of $810 and $685, respectively
(467)(592)
Carrying value of the Senior Notes$397,882 $397,319 
At September 30, 2026, the fair value of the Senior Notes, which are Level 2 measurements, was $371.9 million.
The Senior Notes were issued under an indenture, dated as of May 13, 2021 (the “Indenture”), among the Company, the Subsidiary Guarantors and Wilmington Trust, National Association, as trustee. The Senior Notes are unsecured, senior obligations and are fully and unconditionally guaranteed on a senior unsecured basis, jointly and severally by each of the Subsidiary Guarantors. The Senior Notes mature on May 15, 2029, unless earlier redeemed or purchased and bear interest at 4.25% per year, which is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2021.
The Indenture contains restrictive covenants limiting our ability and our Restricted Subsidiaries (as defined in the Indenture) to, among other things, incur additional indebtedness or issue certain preferred shares, create liens on certain assets to secure debt, pay dividends or make other equity distributions, purchase or redeem capital stock, make certain investments, sell assets, agree to certain restrictions on the ability of Restricted Subsidiaries to make payments to us, consolidate, merge, sell or otherwise dispose of all or substantially all assets, or engage in transactions with affiliates. The Indenture also contains customary events of default.
The interest expense and amortization of debt discount and debt issuance costs related to our Senior Notes are as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2026202520262025
Senior Notes interest expense4,250 4,250 $12,750 $12,750 
Senior Notes amortization of debt discount148 142 439 420 
Senior Notes amortization of debt issuance costs42 40 124 119 
The debt discount and the debt issuance costs are being amortized using the effective interest method over the remaining term of approximately 32 months of the Senior Notes. The effective interest rates on the unamortized debt discount and the unamortized debt issuance costs for the Senior Notes for both the three and nine months ended September 30, 2026 and 2025 were 4.46% and 4.42%, respectively.
Credit Facility
On September 30, 2026, we entered into a $300.0 million revolving credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, replacing our $250.0 million revolving credit facility (the “Prior Credit Facility”) for which Bank of America, N.A., served as administrative agent. At closing, we borrowed $114.7 million under the new facility. The proceeds were used to repay $113.0 million of principal outstanding under the Prior Credit Facility, settle related accrued interest and facility fees, and fund costs of the refinancing. Existing letters of credit under the Prior Credit Facility were continued under the new Credit Facility.
At September 30, 2026, the Credit Facility was comprised of: (i) a $300.0 million revolving credit facility (the “Revolving Credit Facility”), including a $15.0 million subfacility for letters of credit and a $10.0 million swingline, and (ii) an accordion or incremental option allowing for future increases in the facility size by an additional amount of up to $100.0 million in the aggregate in the form of increased revolving commitments, subject to the satisfaction of customary terms and conditions.
Our obligations under the Credit Facility are unconditionally guaranteed on a joint and several basis by the same subsidiaries which guarantee the Senior Notes (as defined in Senior Notes above) and certain of our subsequently acquired or organized domestic subsidiaries (collectively, the “Subsidiary Guarantors”). The obligations under the Credit Facility are secured by a first-priority security interest in substantially all of our personal property assets and of the Subsidiary Guarantors, including a pledge of all equity interests held by the Company or any Subsidiary Guarantor, subject to certain exceptions set forth in the Credit Facility and the related Collateral Documents (as defined in the Credit Facility). The Credit Facility includes provisions that require us and certain subsidiaries, upon the occurrence of an event of default or in the event the Company’s actual Total Net Leverage Ratio (as defined in the Credit Facility) for two consecutive fiscal quarters is not at least 0.50 less than the Required Total Leverage Ratio (defined below), to grant additional liens on real property assets accounting for no less than 50% of our and certain subsidiaries’ funeral operations.
Borrowings under the Revolving Credit Facility bear interest at a rate per annum equal to, at our option, either (a) the Alternate Base Rate (as defined in the Credit Facility) plus the Applicable Rate (as defined in the Credit Facility) or (b) the Term SOFR Rate (as defined in the Credit Facility) plus the Applicable Rate. The Applicable Rate is determined based on the Company’s Total Net Leverage Ratio (as defined in the Credit Facility), in accordance with the following pricing grid:
Applicable Rate
Total Net Leverage RatioAlternative RateTerm SOFR Rate
Category 1: < 3.0 to 1.0
0.25%1.25%
Category 2: < 3.5 to 1.0 but > 3.0 to 1.0
0.50%1.50%
Category 3: < 4.0 to 1.0 but > 3.5 to 1.0
0.75%1.75%
Category 4: > 4.0 to 1.0
1.00%2.00%
The Credit Facility contains customary affirmative and negative covenants, including covenants limiting our ability and the ability of our subsidiaries to, among other things: incur or permit to exist debt; incur or permit to exist liens; make investments; engage in mergers, consolidations, dissolutions or similar fundamental transactions; dispose of assets; pay dividends and make other restricted payments; change the nature of their business and enter into transactions with affiliates. The Credit Facility also requires us to maintain (i) a maximum Total Net Leverage Ratio not to exceed 5.00 to 1.00 as of the last day of each fiscal quarter; provided that in connection with certain material acquisitions, the Company may elect an Adjusted Covenant Period for a period of four (4) consecutive fiscal quarters, during which time, the Total Net Leverage Ratio may not exceed 5.50 to 1.00 as of the last day of each fiscal quarter (the ratio applicable under this clause (i), the “Required Total Leverage Ratio”) and (ii) a minimum Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.20 to 1.00 as of the last day of each fiscal quarter.
The Revolving Credit Facility matures on September 30, 2031; provided that the Senior Notes are not refinanced by February 13, 2029 to include a maturity date of December 30, 2031 or later, the Revolving Credit Facility will instead mature on February 14, 2029.
For the three and nine months ended September 30, 2026, we recognized a loss on debt extinguishment of approximately $0.6 million, consisting of the write-off of unamortized deferred financing costs attributable to departing lenders and the reduction in a continuing lender’s borrowing capacity, together with costs associated with terminating the previous facility. Approximately $0.4 million of unamortized financing costs attributable to continuing lenders was carried forward based on a lender-by-lender borrowing-capacity assessment. We capitalized approximately $1.3 million of costs associated with the new facility. These costs, together with the retained financing costs, are presented as a deferred financing cost asset and amortized to interest expense over the applicable term of the new facility.
Our Credit Facility and acquisition debt consisted of the following (in thousands): 
September 30, 2026December 31, 2025
Credit Facility$114,750 $126,700 
Less: Unamortized debt issuance costs(1,702)(1,265)
Total Credit Facility$113,048 $125,435 
Acquisition debt$5,992 $6,188 
Less: current portion(718)(607)
Total acquisition debt, net of current portion$5,274 $5,581 
At September 30, 2026, we had outstanding borrowings under the Credit Facility of $114.8 million. We also had one letter of credit for $2.2 million under the Credit Facility. The letter of credit will expire on November 25, 2026, and is expected to automatically renew annually and secures our obligations under our various self-insured policies. At September 30, 2026, we had $183.0 million of availability under the Credit Facility.
At September 30, 2026, the alternative rate was equivalent to 1.000% and the SOFR term margin was 2.000%, reflecting the initial Category 4 pricing under the credit agreement. The weighted average interest rate on our Credit Facility was 5.9% and 6.7% for the three months ended September 30, 2026 and 2025, respectively, and 5.9% and 6.8% for the nine months ended September 30, 2026 and 2025, respectively.
We have no material assets or operations independent of the Subsidiary Guarantors, as all of our assets and operations are held and conducted by the Subsidiary Guarantors. Additionally, we do not currently have any significant restrictions on our ability to receive dividends or loans from any Subsidiary Guarantors.
The interest expense and amortization of debt issuance costs related to our Credit Facility are as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2026202520262025
Credit Facility interest expense1,895 2,089 $5,858 $6,690 
Credit Facility amortization of debt issuance costs88 89 265 265 
Acquisition debt
Acquisition debt consists of deferred purchase price and promissory notes payable to sellers. A majority of the deferred purchase price and notes bear no interest and are discounted at imputed interest rates ranging from 6.5% to 8.5%. Original maturities typically range from nine to twenty years.
The imputed interest expense related to our acquisition debt is as follows (in thousands):
Three months ended September 30,Nine months ended September 30,
2026202520262025
Acquisition debt imputed interest expense$110 $93 372 280