DBRS Finalizes Provisional Rating of BB, Stable Trend, on Parkland Fuel Corporation’s New Issuance

DBRS Limited has today finalized its provisional rating of BB with a recovery rating of RR4 to Parkland Fuel Corporation’s (Parkland or the Company) $200 million Senior Unsecured Notes (the Notes) issuance which closed on November 21, 2014. The trend is Stable.

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

(1) $200 million, 6.0% Senior Unsecured Notes due November 21, 2022.

The Notes are unsecured obligations ranking pari passu with Parkland’s existing and future senior indebtedness. The Notes are 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.

Parkland is expected to use proceeds 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.