Press release from CNW Group
Parkland Fuel Corporation Enhances Financial Flexibility with New Three-Year Credit Facility
Wednesday, July 06, 2011
RED DEER, AB, July 6, 2011 /CNW/ - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX: PKI), Canada's largest independent fuel distributor and marketer, today announced that effective June 30, 2011 it entered into a new three year $450 million revolving credit facility, replacing its previous $400 million 364 day extendible credit facility. The new facility also includes a $100 million accordion feature that could potentially increase the total lending capacity to $550 million.
"For the next three years this credit facility will provide Parkland with financial flexibility at better terms and will positively support Parkland's growth and acquisition strategy," said Bob Espey, President and Chief Executive Officer of Parkland. "In addition, the new credit facility includes improved financial covenants that align with the seasonality of Parkland's business and we expect to immediately realize significant savings as a result of the new facility's lower interest rate schedule. We appreciate the exceptional support we have received from our banking partners and look forward to working with them over the three year term of the facility."
The proceeds from the credit facility will be used for general corporate purposes. The lending syndicate includes eight banks with Scotia Capital and RBC Capital Markets serving as co-lead arrangers and joint bookrunnners, the Bank of Nova Scotia serving as administrative agent, Royal Bank of Canada serving as syndication agent, and Canadian Imperial Bank of Commerce and TD Commercial Banking serving as co-documentation agents.
Cautionary Statement Regarding Forward-Looking Information and
Certain statements included herein that contain words such as "believe", "expects", "expected", "will", "intends", "projects", "projected", "anticipates", "estimates", "continues", and similar expressions and statements that are not related to historical facts constitute forward-looking information or statements under securities laws. In particular, the forward-looking information and statements herein include, but are not limited to, statements regarding Parkland's future financial flexibility, the potential increase in lending capacity, support for Parkland's growth and acquisition strategy and savings to be realized. Parkland believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Parkland's annual report, annual information form and other continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Parkland's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: interest rates; the existence of future growth opportunities; participation of the lending syndicate in the accordion feature; general economic, market and business conditions; and other factors, many of which are beyond the control of Parkland. Any forward-looking statements are made as of the date hereof and Parkland does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.
About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer and distributor of petroleum products, managing a nationwide network of sales channels. We are Canada's local fuel company, delivering gasoline, diesel fuel, lubricants, heating oil and other products to businesses, consumers and wholesale customers by community based operators who care.
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