Summary
Casey's General Stores, Inc. (CASY) announced on December 31, 2020, a significant amendment to its existing credit agreement, primarily aimed at bolstering its financial flexibility. The key change involves an increase in the revolving credit facility capacity by $150 million, bringing the total to $450 million. This expanded facility is earmarked for the acquisition of Bucky's Convenience Stores, as well as for general corporate needs such as working capital, capital expenditures, and share repurchases. Furthermore, the amendment introduces a new senior unsecured delayed-draw term loan facility of up to $300 million. This facility also supports the Bucky's acquisition and other corporate uses. These enhancements to its credit facilities provide Casey's with increased resources to fund strategic growth initiatives and manage its ongoing operational and financial requirements.
Key Highlights
- 1Increased revolving credit facility from $300 million to $450 million, a $150 million boost.
- 2Established a new senior unsecured delayed-draw term loan facility of up to $300 million.
- 3Proceeds from both facilities are intended to finance the acquisition of Bucky's Convenience Stores.
- 4The expanded revolving facility will also support working capital, capital expenditures, and general corporate purposes.
- 5No material changes to covenants or events of default as a result of the amendment.
- 6The revolving facility matures on January 11, 2024, while the term loan facility matures on January 6, 2026.
- 7Interest rates and facility fees are variable and tied to the Company's Consolidated Leverage Ratio.