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 or the Company; rated BB with a Stable trend by DBRS) USD 500 million 5.875% Senior Unsecured Notes (the Notes) due in 2027, which closed on July 10, 2019. 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, 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 the Company’s USD 250 million Term Loan Facility due in 2021 and to repay certain outstanding amounts borrowed under its existing revolving credit facilities.

Notes:
All figures are in U.S. 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 & Criteria.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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