Skip navigation

Couche-Tard Slams Casey’s ‘Outrageous’ Debt Placement

MONTREAL — Alimentation Couche-Tard here returned volley from takeover target Casey’s General Stores on Thursday, calling the latter’s private debt placement “outrageous” and pretext for a “coercive financing arrangement” that would impede takeovers.

MONTREAL — Alimentation Couche-Tard here returned volley from takeover target Casey’s General Stores on Thursday, calling the latter’s private debt placement “outrageous” and pretext for a “coercive financing arrangement” that would impede takeovers.

Couche-Tard, which has offered to buy all of Casey’s stock for $36.75 per share, said the leveraged recapitalization — in which Casey’s pledged to buy $500 million of its own stock at prices up to $40 per share — amounts to a transfer of value from Casey’s shareholders to its noteholders. The debt placement includes a “costly and unusual ‘poison put’ feature” that rewards noteholders if any party acquires more than 35% of Casey’s stock, or if shareholders try to replace members of Casey’s board, Couche-Tard added.

“We believe the Casey's leveraged recapitalization plan confirms there are no other buyers for Casey's at a price exceeding Couche-Tard's offer,” Couche-Tard said in a statement. Its offer to buy Casey’s, a convenience store operator based in Ankeny, Iowa, expires Aug. 30 if not extended.