Casey's General Stores enters into $300 million five-year revolver

By Sarah Lizee

Olympia, Wash., Jan. 17 – Casey's General Stores, Inc. entered into a credit agreement on Jan. 11 with Royal Bank of Canada as administrative agent providing for a $300 million unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

RBC Capital Market is the lead arranger and bookrunner.

The maturity date is Jan. 11, 2024.

Borrowings bear interest at Libor plus a margin that ranges from 80 basis points to 160 bps, based on the consolidated leverage ratio of the company. The facility fee ranges from 20 bps to 40 bps, also based on the leverage ratio. Initially, interest is Libor plus 120 bps and the facility fee is 30 bps.

There is no scheduled amortization.

The company may reduce the unused portion of the commitment amount and repay outstanding loans at any time without premium or penalty.

The revolver includes $30 million sublimits for letters of credit and swingline loans.

The company may request to increase the revolver by up to $150 million, subject to some conditions.

The revolver is available for working capital needs, capital expenditures, commercial paper backstops, share repurchases and other general corporate purposes.

Under the credit agreement, the consolidated leverage ratio cannot be greater than 4 to 1, with a temporary increase to 4.5 to 1 in case of some material acquisitions.

Additionally, the company delivered to UMB Bank, NA a promissory note of $25 million to renew the company’s existing unsecured line of credit.

The line of credit was reduced from $150 million.

The line of credit is available to finance short-term operating and other expenses, working capital and general corporate purposes.

Interest is initially 3.43% per annum.

Casey's is a convenience store operator based in Ankeny, Iowa.

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