Casey’s Calls Stock Buyback Plan a Success

ANKENY, IOWA – Casey’s General Stores, Inc. today announced the preliminary results of its modified “Dutch auction” self tender offer, which expired on August 25 at 12:00 midnight New York City time.
 
Based on the preliminary count by the depositary for the offer, a total of approximately 28.2 million shares were validly tendered at the minimum purchase price of $38.00 per share, including 14.0 million shares that were tendered through notice of guaranteed delivery.  Assuming that all guaranteed delivery shares are ultimately delivered, Casey’s expects to purchase a pro-rated amount of 47 percent of shares from each tendering stockholder, but all shares purchased in the offer will be purchased at the same price.  As such, Casey’s expects to accept for payment an aggregate of approximately 13.2 million shares of its common stock at a purchase price of $38.00 per share, for a total cost of approximately $500 million, excluding fees and expenses related to the offer.  The approximately 13.2 million shares expected to be purchased in the Offer represent approximately 25.8 percent of Casey’s shares outstanding as of July 23, 2010.

Robert J. Myers, Casey’s president and CEO, said, “Our recapitalization plan was successful on every level. It has provided the Company with an opportunity to purchase a significant number of shares at an attractive price and has allowed shareholders who held their shares to benefit from the significant long-term value of owning a larger percentage of Casey’s. The financing at a fixed rate of 5.22 percent for 10 years has allowed us to benefit from historically low interest rates and will drive EPS accretion.  We continue to believe that our stock is undervalued at recent trading levels and that Casey’s is creating far greater value than is reflected in Couche-Tard’s inadequate $36.75 per share offer. We look forward to continuing to execute on our strategic growth initiatives.”