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

DBRS Limited (DBRS) assigned a rating of BB with a Stable trend to Parkland Fuel Corporation’s (Parkland; rated BB, Stable by DBRS) debt issuance of $300 million 6.50% Senior Unsecured Notes (the Notes), due January 21, 2027, which closed on November 21, 2018. The rating being assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The Notes are direct senior unsecured obligations of Parkland and rank pari passu with all of Parkland’s existing and future senior unsecured indebtedness and are senior in right of payment to any future subordinated indebtedness. The Notes are also effectively subordinated to all secured indebtedness, which includes Parkland’s credit facilities and other secured obligations.

The net proceeds from the Notes will be used to repay a portion of the amounts outstanding under Parkland’s credit facilities, which the company expects to draw on to fund a portion of the acquisition of Sol Investments Limited (See the DBRS press release “DBRS Confirms Parkland Fuel Corporation at BB, Stable, Following Announcement to Acquire 75% of Sol Investments Limited,” published on October 10, 2018).

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

The principal methodologies are Rating Companies in the Merchandising Industry and DBRS Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers, which can be found on dbrs.com under Methodologies.

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