Parkland amends facility to increase another C$200 million to C$1.9 billion

Chicago, March 25 – Parkland Corp. amended its syndicated credit agreement to provide for an additional C$200 million of commitments maturing on March 25, 2026, according to a press release.

This raises the syndicated credit facilities to around C$1.9 billion from approximately C$1.7 billion.

The interest rate is materially unchanged from the current rate.

However, minor updates include the minimum interest coverage ratio reduced to 2.5x from 3x. Additionally, the temporary maximum total funded debt to credit facility EBITDA ratio of 6x effective from the fourth quarter of 2020 to the third quarter of 2021 has been removed and reverted to 5x.

Proceeds with an at-the-market equity offering will be used to redeem all of the outstanding C$300 million principal amount of 5¾% senior notes due Sept. 16, 2024. The notes will be redeemed on April 9. The company will also redeem, with the proceeds, C$300 million of the outstanding C$500 million principal amount of 5 5/8% senior notes due May 9 2025. The notes will be redeemed on May 10. In both cases the notes will be redeemed at the applicable redemption price plus interest to the redemption date.

Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. It is based in Calgary, Alta.

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