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

DBRS Limited (DBRS Morningstar) assigned a rating of BB with a Stable trend to Parkland Corporation’s (Parkland or the Company; rated BB with a Stable trend by DBRS Morningstar) USD 800 million 4.500% Senior Unsecured Notes (the Notes) due April 2029, which closed on April 13, 2021. The Recovery Rating is RR4. The rating being assigned is based upon the rating of an already-outstanding series of the above-mentioned debt instrument.

The net proceeds from the Notes are intended to be used to (1) redeem the outstanding USD 500 million aggregate principal amount of 6.000% Senior Unsecured Notes due in 2026; (2) redeem the remaining CAD 200 million of the outstanding CAD 500 million aggregate principal amount of the 5.625% Senior Unsecured Notes due in 2025 not already called for redemption; and (3) repay certain amounts outstanding under the Company’s revolving bank credit facility. The Notes are direct senior unsecured obligations of Parkland and rank pari passu with all of the Company’s existing and future senior unsecured indebtedness and are senior in right of payment to any future subordinated indebtedness. The Notes are effectively subordinated to all secured indebtedness, which includes Parkland’s credit facilities.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.

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

The principal methodologies are Rating Companies in the Merchandising Industry (July 30, 2020; https://www.dbrsmorningstar.com/research/364692) and DBRS Morningstar Criteria: Recovery Ratings for Non-Investment Grade Corporate Issuers (August 24, 2020; https://www.dbrsmorningstar.com/research/366063), which can be found on dbrsmorningstar.com under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (February 3, 2021; https://www.dbrsmorningstar.com/research/373262).

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at [email protected].

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