DBRS Assigns Provisional Rating of BB, Stable Trend, to Parkland Fuel Corporation’s New Debt Issuance

DBRS Limited has today assigned a provisional rating of BB with a recovery rating of RR4 to Parkland Fuel Corporation’s (Parkland) proposed $200 million Senior Unsecured Notes (the Notes) offering announced on November 13, 2014. The trend is Stable.

The senior unsecured debt issuance is expected to be made up of a single tranche of:

(1) $200 million Senior Unsecured Notes due 2022.

The Notes will be unsecured obligations ranking pari passu with Parkland’s existing and future senior indebtedness. The Notes will be effectively subordinated to all secured indebtedness, including Parkland’s indebtedness pursuant to its credit agreement to the extent of the value of the assets securing such secured indebtedness. Proceeds are expected to be used by Parkland to fund a portion of the purchase price of the acquisition of Pioneer Energy LP. In the event that the acquisition is not completed, the proceeds are expected to be used to repay amounts drawn on the Company’s credit facility and for general corporate purposes.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodology is Rating Companies in the Merchandising Industry (October 2014), which can be found on our website under Methodologies.