Casey's Sets $250 Million Senior Notes Deal to Help Fund Fikes Wholesale Acquisition
Casey's General Stores agreed on October 4, 2024 to issue $250 million of senior notes, with closing expected October 30, 2024, and said it intends to use the proceeds for general corporate purposes, including funding its previously announced acquisition of Fikes Wholesale and Group Petroleum Services. The notes carry fixed rates of 5.23% and 5.43% and new covenants, including a leverage ratio cap of 4.00 to 1.00, that existing lenders' agreements have been amended to match, adding debt that shareholders will need to weigh against the acquisition.
- Total issuance is $250 million: $150 million of 5.23% Series I Notes due November 2, 2031, and $100 million of 5.43% Series J Notes due November 2, 2034.
- Notes are expected to be issued October 30, 2024, subject to customary closing conditions.
- Proceeds are intended for general corporate purposes, including the acquisition of 100% of Fikes Wholesale, Inc. and Group Petroleum Services, Inc.
- Covenants include a maximum Consolidated Total Debt to Consolidated EBITDA ratio of 4.00 to 1.00, temporarily 4.50 to 1.00 for certain material acquisitions, subject to an Excess Leverage Fee.