Parkland Fuel Corporation

Parkland Fuel Corporation

May 12, 2011 16:09 ET

Parkland Fuel Corporation Announces $75 Million Bought Deal Equity Financing

RED DEER, ALBERTA--(Marketwire - May 12, 2011) -


Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX:PKI) is pleased to announce that is has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and Scotia Capital Inc. and including CIBC World Markets Inc., TD Securities Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., Canaccord Genuity Corp., and PI Financial Corp. (collectively the "Underwriters"), under which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis 6,200,000 common shares in the capital of Parkland (the "Common Shares"), at a price of $12.10 per Common Share resulting in aggregate gross proceeds of $75,020,000 (the "Offering"). All financial figures referred to in this news release are in Canadian dollars.

Parkland has also granted the Underwriters an option exercisable, in whole or in part, for a period expiring 30 days following closing of the Offering, to purchase from the Corporation, up to an additional 930,000 Common Shares at the same Offering price which, if exercised in full, would increase the aggregate gross proceeds of the Offering to $86,273,000.

"In addition to being a part of the funding for the two accretive retail acquisitions we announced on May 9, 2011, this equity financing, along with Parkland's Premium Dividend and Dividend Reinvestment Plan, will enhance our financial flexibility to pursue other growth opportunities and reduce our current debt level," said Bob Espey, President and CEO of Parkland Fuel Corporation.

Parkland intends to use the net proceeds of the Offering: (i) to directly or indirectly finance the recently announced acquisition of the business of Cango Inc. and the purchase of seven retail fuel outlets from Overwaitea Food Group (collectively the "Acquisitions"); (ii) to repay outstanding indebtedness; and (iii) for general corporate purposes including future growth opportunities.

The Acquisitions, which remain subject to certain closing conditions, represent annualized retail fuel volumes in excess of 425 million litres. The aggregate cost of the Acquisitions is approximately $22 million.

This Offering is subject to certain customary conditions including regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The Common Shares will be issued by way of a short form prospectus to be filed with the securities regulatory authorities in each of the provinces of Canada excluding Québec. Closing of the Offering is anticipated to occur on or about June 2, 2011.

This press release does not constitute an offer to sell or a solicitation of any offer to buy the Common Shares in the United States. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration under, or an applicable exemption from the registration requirements of, the U.S. Securities Act.

Cautionary Statement Regarding Forward-Looking Information and Statements

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 the anticipated use of the net proceeds of the Offering, the completion of the Acquisitions, the anticipated closing date of the Offering and the growth of Parkland's business and operations. 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: timely receipt of required securities and regulatory approvals; the satisfaction or waiver of the closing conditions relating to the Acquisitions; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; 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 ("Parkland") is Canada's largest independent marketer and distributer of fuels, managing a nationwide network of sales channels for retail, commercial, wholesale and home heating fuel customers. Parkland's mission is to be the most trusted source of convenience for fuel and related products focused on non-urban markets. Our family of brands includes: Fas Gas Plus, Race Trac Gas, Bluewave Energy, Columbia Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United Petroleum Products and Island Petroleum. We are Canada's local fuel company, delivering competitive fuel products and serving Canadian communities through local operators who care. For more information please visit

Parkland shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols PKI, PKI.DB and PKI.DB.A.

Contact Information

  • For investor and media inquiries, or to be added to the
    email news alert service, please contact:
    Parkland Fuel Corporation
    Tom McMillan, Investor Relations Manager
    403-356-6722 or 1-800-662-7177 ext 6722