8-KMaterial AgreementsFinancial EventsExhibits & Filings

CASEYS GENERAL STORES INC 8-K Report, Material Agreement (Feb 12, 2013)

Filed February 12, 2013For Securities:CASY

Summary

Casey's General Stores, Inc. (CASY) announced on February 12, 2013, an amendment to its revolving line of credit with UMB Bank, n.a. This filing details the execution of a Promissory Note, increasing the aggregate principal amount of the credit facility from $100 million to $125 million. The new $25 million note is unsecured and extends the company's access to short-term funding. This increased credit availability is intended to support the company's ongoing operational needs, including expenses related to new store construction, remodels, maintenance, and potential acquisitions. Investors should note that the increased credit line is payable on demand by the lender and carries a variable interest rate tied to the Federal Funds Offered Rate, plus a spread of 1.000%. The existing Negative Pledge Agreement remains in effect.

Key Highlights

  • 1Casey's General Stores increased its revolving line of credit by $25 million, bringing the total facility to $125 million.
  • 2The increase was effective February 8, 2013, through a new Promissory Note with UMB Bank, n.a.
  • 3The $25 million note is unsecured.
  • 4The company uses the revolving credit line to finance short-term operating expenses such as store construction, remodels, and acquisitions.
  • 5The interest rate on the new note is variable, set at 1.000% over the Federal Funds Offered Rate, with an initial rate of 1.100% per annum.
  • 6The note is payable in full upon the lender's demand.
  • 7The existing Negative Pledge Agreement from May 23, 2011, remains applicable to obligations under the new note.

Frequently Asked Questions

The increased credit line is intended to provide Casey's General Stores with additional short-term funding flexibility to manage operational expenses. This includes financing costs for new store constructions, replacements, major remodels and maintenance, and store acquisitions.

The new $25 million note is unsecured, payable in full upon the lender's demand, and carries a variable interest rate of 1.000% over the Federal Funds Offered Rate (initially 1.100% per annum). Regular monthly payments of accrued interest are due starting March 1, 2013.

The filing states that the Negative Pledge Agreement dated May 23, 2011, remains in effect and is applicable to any obligation incurred under this new note. This means existing covenants and restrictions generally continue to apply.

No, the filing explicitly states that UMB Bank, n.a. has no obligation to advance funds under the note. Each advance is at the lender's sole discretion, and they have made no commitment to make any such advances, provided certain conditions like no defaults or insolvency are met.