StoneMor Partners L.P. Announces Public Offering Of Common Units

LEVITTOWN, Pa., Jan. 31, 2011 (GLOBE NEWSWIRE) -- StoneMor Partners L.P. (Nasdaq:STON) ("StoneMor") announced today a public offering, subject to market and other conditions, of 4,649,366 common units representing limited partner interests in StoneMor. Of the 4,649,366 common units offered, StoneMor is selling 2,800,000 common units and certain unitholders are selling 1,849,366 common units. In connection with the offering, StoneMor expects to grant the underwriters a 30-day option to purchase up to 697,404 additional common units to cover over-allotments, if any. StoneMor intends to use the net proceeds from the common units it is offering and the related capital contribution by its general partner: (1) to redeem in full outstanding 12.5% Series B and 12.5% Series C senior secured notes due August 2012 and pay an aggregate make-whole premium related thereto; (2) to prepay the borrowings outstanding under its existing acquisition credit facility; (3) to pay down the borrowings outstanding under its existing revolving credit facility; and (4) to fund capital improvements or for general partnership purposes. StoneMor will not receive any proceeds from the sale of common units by the selling unitholders. If the underwriters exercise their option to purchase additional common units, StoneMor will use the additional net proceeds and related capital contribution by its general partner to fund capital improvements or for general partnership purposes. 

The common units will be offered and sold pursuant to an effective shelf registration statement on Form S-3. The offering may be made only by means of a prospectus supplement, which will be filed with the Securities and Exchange Commission (the "SEC"), and the related base prospectus. Raymond James and Barclays Capital are serving as bookrunners of the offering, and Baird and Janney Montgomery Scott are acting as co-managing underwriters of the offering. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.