Parkland arranges $300-million note offering
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