Successful Recapitalization of a Leading Owner and Operator of Cemeteries and Funeral Homes


Situation Overview

StoneMor Partners, LP (StoneMor or the Company) is a leading owner and operator of 322 cemeteries and 91 funeral homes in 27 states and Puerto Rico.

Carl Marks Advisors (CMA) was retained by StoneMor in September 2018 to assist in negotiating an amendment to a $175 million senior secured credit facility that was necessitated after several years of declining sales and an increasingly inefficient cost structure. New senior management had recently joined the Company and was focused on developing and implementing a turnaround plan to increase sales and lower costs. However, the Company needed to deal with pending potential defaults on its credit facility and limited liquidity to provide the time needed to implement improvements in the business.

CMA worked closely with management to develop the near-term liquidity forecasts and longer-run forecasts that were key inputs used in raising a $35 million liquidity bridge financing. These forecasts were also critical in negotiating the credit facility amendment to reset covenants and set milestones for refinancing of the credit facility.

As part of the amendment, CMA’s role was expanded to lead initiatives within StoneMor in several key areas, including liquidity tracking/forecasting, cost reduction identification/implementation and oversight of the refinancing process.

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