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 Stable trend to Parkland Corporation’s (Parkland or the Company) USD 800 million 4.625% Senior Unsecured Notes (the Notes) due May 1, 2030, which closed on November 23, 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 (1) to redeem the outstanding $300 million aggregate principal amount of 6.500% Senior Unsecured Notes due in 2027, (2) to repay certain amounts outstanding under the Company’s revolving credit facility, and (3) for general corporate purposes. 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 the Company’s revolving credit facility.

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 26, 2021; https://www.dbrsmorningstar.com/research/382073) and DBRS Morningstar Criteria: Recovery Ratings for Non-Investment-Grade Corporate Issuers (August 19, 2021; https://www.dbrsmorningstar.com/research/383238), 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).

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

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

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