Parkland Corporation announced today that it has entered into an underwriting agreement to sell at par, pursuant to a private placement (the “Offering”), $600 million aggregate principal amount of 4.375% Senior Unsecured Notes due March 2029 (the “Notes”).
Parkland intends to use net proceeds of the Offering, together with borrowings under its credit facilities, to redeem: (i) all of the outstanding $300 million aggregate principal amount of its 5.75% Senior Notes (the “5.75% Senior Notes”) with a final maturity date of September 16, 2024; and (ii) $300 million of the outstanding $500 million aggregate principal amount of its 5.625% Senior Notes (the “5.625% Senior Notes”) with a final maturity date of May 9, 2025 (collectively referred to as the “Redemptions”), in each case, at the applicable redemption price noted below, plus accrued and unpaid interest to the applicable redemption date.
The Offering is being underwritten by Scotiabank, RBC Capital Markets and CIBC World Markets as joint bookrunners, and a syndicate of underwriters, including BMO Capital Markets and TD Securities as co-lead managers, and J.P. Morgan, ATB Capital Markets, Desjardins Securities, HSBC, MUFG, National Bank Financial Markets, Wells Fargo Securities, Peters & Co. Limited, Canaccord Genuity and Goldman Sachs & Co. LLC 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.
Parkland also announced today that conditional redemption notices will be delivered for the full redemption of the 5.75% Senior Notes, with a redemption price of 102.875%, and the partial redemption of the 5.625% Senior Notes, with a redemption price of 102.813%. The redemption date for the 5.75% Senior Notes will be April 9, 2021 and the redemption date for the 5.625% Notes will be May 9, 2021. The Redemptions are conditional on the completion of the Offering.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.
About Parkland Corporation
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings 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.
For Further Information
Investor and Media Inquiries
Director, Capital Markets
Senior Specialist, Corporate Communications