Park­land ar­ranges $300-mil­lion note of­fer­ing

Stockwatch Daily - - CONSUMER GOODS - Mr. Ben Brooks re­ports

PARK­LAND FUEL Corp. has en­tered into an un­der­writ­ing agree­ment to sell, pur­suant to a pri­vate place­ment, $300-mil­lion ag­gre­gate prin­ci­pal amount of 6.50 per cent se­nior un­se­cured notes due Jan. 21, 2027.

On Oc­to­ber 10, 2018, Park­land an­nounced that it had en­tered into an agree­ment to ac­quire 75% of the is­sued and out­stand­ing shares of SOL In­vest­ments Ltd. (“SIL”) pur­suant to a busi­ness com­bi­na­tion agree­ment be­tween Park­land, Es­trella Hold­ings Lim­ited (a wholly-owned sub­sidiary of Park­land) and SIL’s par­ent cor­po­ra­tion, SOL Lim­ited (the “Trans­ac­tion”).

The net pro­ceeds of the Of­fer­ing will be used by Park­land to re­pay a por­tion of the amounts out­stand­ing un­der the Cana­dian por­tion of Park­land’s ex­ist­ing re­volv­ing syn­di­cated credit fa­cil­i­ties (the “Credit Fa­cil­i­ties”). Park­land ex­pects to draw ap­prox­i­mately $770 mil­lion un­der its new se­nior se­cured debt fa­cil­i­ties and term loan fa­cil­i­ties (the “New Credit Fa­cil­i­ties”), which fa­cil­i­ties are ex­pected to re­place the Credit Fa­cil­i­ties at or prior to clos­ing of the Trans­ac­tion, to fund a por­tion of the pur­chase price for the Trans­ac­tion. Sub­ject to the sat­is­fac­tion of cus­tom­ary clos­ing con­di­tions, the Of­fer­ing is ex­pected to close on Novem­ber 21, 2018.

The Of­fer­ing is be­ing un­der­writ­ten by Na­tional Bank Fi­nan­cial Inc. and CIBC World Mar­kets Inc. as joint bookrun­ners and co-lead man­agers, and Sco­tia Cap­i­tal Inc., as co-lead man­ager, BMO Nes­bitt Burns Inc., Credit Suisse Se­cu­ri­ties (USA), LLC, J.P. Mor­gan Se­cu­ri­ties Canada Inc., RBC Do­min­ion Se­cu­ri­ties Inc., TD Se­cu­ri­ties Inc., Wells Fargo Se­cu­ri­ties Canada, Ltd. and Canac­cord Ge­nu­ity Corp. as co-man­agers.

The Notes are be­ing con­di­tion­ally of­fered for sale in Canada on a pri­vate place­ment ba­sis pur­suant to cer­tain prospec­tus ex­emp­tions. The Notes have not been reg­is­tered un­der the U.S. Se­cu­ri­ties Act, or any state se­cu­ri­ties laws, and are be­ing of­fered and sold in the United States only to qual­i­fied in­sti­tu­tional buy­ers in reliance on Rule 144A un­der the U.S. Se­cu­ri­ties Act and ap­pli­ca­ble state se­cu­ri­ties laws and out­side the United States in off­shore trans­ac­tions in reliance on Reg­u­la­tion S un­der the U.S. Se­cu­ri­ties Act.

About Park­land Fuel Cor­po­ra­tion

Park­land is Canada’s largest and one of North Amer­ica’s fastest grow­ing in­de­pen­dent sup­pli­ers and mar­keters of fuel and pe­tro­leum prod­ucts and a lead­ing con­ve­nience store op­er­a­tor. Park­land ser­vices cus­tomers through three chan­nels: Re­tail, Com­mer­cial and Whole­sale. Park­land op­ti­mizes its fuel sup­ply across th­ese three chan­nels by op­er­at­ing the Park­land Burn­aby Re­fin­ery, and lev­er­ag­ing a grow­ing port­fo­lio of sup­ply re­la­tion­ships and stor­age in­fra­struc­ture. Park­land pro­vides trusted and lo­cally rel­e­vant fuel brands and con­ve­nience store of­fer­ings, in­clud­ing its On the Run/Marche Ex­press ban­ners, in the com­mu­ni­ties it serves.

Park­land cre­ates value for share­hold­ers by fo­cus­ing on its proven strat­egy of grow­ing or­gan­i­cally, re­al­iz­ing a sup­ply ad­van­tage and ac­quir­ing pru­dently and in­te­grat­ing suc­cess­fully. At the core of our strat­egy are our peo­ple, as well as our val­ues of safety, in­tegrity, com­mu­nity and re­spect, which are em­braced across our or­ga­ni­za­tion.

We seek Safe Har­bor.

John Fred­er­ick Bech­told, Lisa J Col­nett, Robert Berthold Espey, Ti­mothy W Hog­a­rth, James Pan­te­lidis, Domenic Pilla, Steven P Richard­son, David A Spencer, Deb­o­rah Su­san Stein

(PKI) Shares: 132,999,480

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