Parkland Corporation has announced an amended syndicated senior secured credit facility agreement and the establishment of an at-the-market (ATM) equity program. Parkland also announced the closing of its private placement of $600 million aggregate principal amount of senior unsecured notes due 2029.
“Parkland is in a strong financial position heading into an expected economic recovery,” said Marcel Teunissen, CFO, Parkland Corporation. “Our balance sheet flexibility provides the foundation to execute on our growth strategy.”
The credit facility agreement increases the amount available under Parkland’s syndicated credit facilities from approximately $1.7 billion to approximately $1.9 billion. The agreement has a term of five years, maturing on March 25, 2026, with an effective interest rate that is materially unchanged from the current facility.
Parkland has also established an ATM program, reinstating a cost-effective and flexible financing instrument previously available to them from 2016 to 2018. The ATM program allows Parkland to issue up to $250,000,000 of common shares from treasury (“Common Shares”) to the public at Parkland’s sole discretion, at the prevailing market price. The use of the ATM program will be evaluated relative to the cost of other funding options and in consideration of leverage levels.