StoneMor Shares Slide 11% After Company Says It Is In Default On a Credit Agreement

Shares of cemetery and funeral home operator StoneMor Parnters L.P. slid more than 10% Monday, after the company said it is in default on its revolving credit agreement after failing to file its annual 10-K with the Securities and Exchange Commission by a July 15 deadline. The delay was caused by an accounting review that has not yet been completed. Trevose, Pennsylvania-based StoneMor said that makes it likely that it will miss a separate SEC deadline for its quarterly 10-Q for the March period. "The Partnership has communicated with all its lenders that it will be seeking a waiver or other relief to extend the time for filing the Form 10-K and expects to seek similar relief to extend the time for filing the Second Quarter 10-Q," the company said in a statement. StoneMor said it still expects the review to lead to a net decrease in deferred revenue and selling costs and an increase in partners' capital on its balance sheet. It does not expect any material impact on cash flows for the three years ended December 31, 2016. StoneMor is the only publicy traded death care company that is structured as a partnership. Shares are down 10% for 2017 so far, while the S&P 500 has gained 10%.