Casey’s General Stores, Inc. Enters into Credit Agreement with Royal Bank of Canada
January 17, 2019 at 10:22 pm IST
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On January 11, 2019, Casey’s General Stores, Inc. entered into a credit agreement with Royal Bank of Canada, as administrative agent and the lenders and issuing banks from time to time party thereto. The Company is the borrower under the Credit Agreement. The Credit Agreement provides for a $300 million unsecured revolving credit facility that includes a $30 million sublimit for letters of credit and a $30 million sublimit for swingline loans. The Credit Agreement contains an expansion option permitting the Company to request an increase of the Credit Facility from time to time up to an aggregate additional $150 million from the lenders or other financial institutions acceptable to the Company and the Administrative Agent, upon the satisfaction of certain conditions, including the consent of the lenders whose commitments would increase. The Credit Facility is available to finance the Company’s working capital needs, capital expenditures, commercial paper backstops, share repurchases and other general corporate purposes. The maturity date is January 11, 2024. Amounts borrowed under the Credit Facility will bear interest at variable rates based upon, at the Company’s option, either: (a) LIBOR adjusted for statutory reserve requirements (but no less than 0.00%) for the interest period in effect, plus an applicable margin ranging from 0.80% to 1.60%; or (b) an alternate base rate, which generally equals the highest of the prime commercial lending rate announced by the Administrative Agent as its “prime rate”, the federal funds rate plus 1/2 of 1.00%, and one-month LIBOR plus 1.00%, each plus an applicable margin ranging from 0.00% to 0.60%. The Credit Facility carries a facility fee of 0.20% to 0.40% per annum, and letters of credit are subject to a participation fee ranging from 0.80% to 1.60% per annum. The applicable margins, facility fee and letter of credit fee, in each case, are dependent upon the Company’s Consolidated Leverage Ratio, as calculated quarterly in accordance with the Credit Agreement. Initially, the obligations under the Credit Facility are unsecured. If: (a) the Company has obtained a corporate rating by a rating agency that is not investment grade; (b) at any time following the Company’s initial receipt of a corporate rating, upon the Company no longer has a corporate rating; or (c) the Company or its subsidiaries are required to provide liens to secure certain “priority debt” in excess of 20.00% of the Company’s Consolidated Net Worth, as defined and calculated in accordance with the Credit Agreement (each, a “Collateral/Covenant Event”), then the obligations under the Credit Facility will be required to be secured. The exact collateral will depend on the type of Collateral/Covenant Event.
Caseyâs General Stores, Inc. is a convenience retailer and pizza chain in the United States. The Company operates convenience stores primarily under the names Casey's and Caseyâs General Store throughout 17 states, over half of which are located in Iowa, Missouri, and Illinois. All convenience stores carry a broad selection of food items (including, but not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, health and beauty aids, automotive products, and other nonfood items. Its GoodStop and Lone Star Food Store branded stores offer fuel for sale on a self-serve basis, and a broad selection of snacks, beverages, tobacco products, and other essentials. It operates three distribution centers, through which certain grocery and general merchandise and prepared food and dispensed beverage items are supplied to its stores. It operates over 2,600 convenience stores.
CASEY'S GENERAL STORES, INC. 
