#Canada #Acquisition #Calgary #Sunoco #Parkland

Parkland Corporation's Successful Completion of Consent Solicitation

Parkland Corporation, a leading international marketer and distributor of fuels, has recently completed a significant milestone regarding its acquisition of Sunoco. Announced on June 10, 2025, Parkland has successfully garnered the necessary consents to modify agreements associated with its senior notes, a crucial step in solidifying its acquisition strategy.

In details released by Parkland, the consent solicitations were related to the definitive agreement established for acquiring all the issued and outstanding shares of Parkland by Sunoco LP. This transaction, previously disclosed on May 5, 2025, marks a pivotal moment for Parkland as it aims to enhance its operational capabilities and expand its market reach.

Key Modifications to Contract Terms

The modifications that Parkland intends to execute include:
1. Elimination of Control Change Offer Requirement: One of the major changes is the removal of the potential obligation for Parkland to make a 'Control Change Offer' as defined in the contracts as a result of this transaction.
2. Redefinition of Control Change: The term 'Control Change' within the contracts will be amended to clarify that Sunoco and its subsidiaries are deemed as 'Qualified Owners' of Parkland, asserting their stake effectively.

This strategic amendment reflects Parkland’s proactive approach in addressing the concerns of its bondholders amidst transitions in ownership and internal structure. The restructuring of debt agreements is often critical during major acquisitions to maintain investor confidence and ensure liquidity during the adjustment phase.

Financial Implications and Timeline

The consent solicitations were open until 5 PM Eastern Time on June 9, 2025. Following the expiration, Parkland, along with the appropriate guarantors and the relevant trustee, will formalize supplemental indentures for each series of notes to integrate the proposed changes.

Importantly, each supplemental agreement will take effect upon formal execution, subject to the closing of the transaction and receipt of applicable consent fees. Parkland is set to distribute consent fees to bondholders who submitted valid and unrevoked consents before the deadline.

For every $1,000 in principal of the relevant notes, bondholders will receive $0.50 as a consent fee immediately following the deadline, with another payment of the same amount to be made upon the transaction's closing.

Looking Ahead: The Path for Parkland

With this successful completion, Parkland is not only reinforcing its position in the market but also preparing for enhanced operational synergy with Sunoco. Following the closure of this transaction, Parkland anticipates numerous operational benefits, including increased market penetration and improved resource management across its retail and commercial segments.

Parkland's ambitions extend beyond mere acquisition, as the company is also committed to tackling environmental challenges. As they consolidate their operations, strategies like renewable fuel blending, rapid electric vehicle charging, and diverse carbon credit solutions remain central to their mission.

The corporation operates around 4,000 retail locations across North America and the Caribbean, positioning itself strategically to meet the evolving demands of consumers and businesses alike. By integrating Sunoco’s assets and expertise, Parkland aims to unlock exceptional value and deliver consistent results.

In summary, Parkland Corporation’s recent activities demonstrate a calculated approach to strategic growth through acquisitions, reflective of their forward-looking vision in the energy market. Their commitment to innovation alongside a robust operational framework signals a promising future for the company and its stakeholders.