Casey's General Stores completes private placement worth $569 million

Ankeny, Iowa As part of its ongoing battle to fend off acquisition by Canadian convenience-store operator Alimentation Couche-Tard, Casey's General Stores said Tuesday it has completed a private placement for $569 million of 5.22% senior unsecured notes due 2020.

The company said it plans to use the net proceeds to pay for its previously announced recapitalization plan, which would be executed through a modified Dutch auction self tender offer. That offer is worth up to $500 million in the value of shares of its common stock.

The company said it will also use net proceeds to pay fees and expenses in connection with the offer, and will use about $59 million of the proceeds for prepayment of senior notes.

Last week, Couche-Tard extended its offer to buy all the outstanding shares of Casey's General Stores for $36.75 apiece.

The tender offer will expire at 5 p.m. EDT on Aug. 30, unless it is again extended. It originally had been set to expire on Aug. 6.