Parkland Corporation Announces Consent Solicitations for Senior Notes in Connection with the Sunoco Acquisition

CALGARY, AB, May 27, 2025 //PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (TSX: PKI) (“Parkland”) today announced that it has commenced consent solicitations to amend the indentures (the “Indentures”) governing certain series of its outstanding US dollar-denominated and Canadian dollar-denominated notes (each a “Consent Solicitation” and collectively, the “Consent Solicitations”), as listed in the table below (collectively, the “Notes”). The Consent Solicitations are being made in connection with Parkland’s definitive agreement whereby Sunoco LP (“Sunoco”) will acquire the issued and outstanding common shares of Parkland (the “Transaction”), which was previously announced on May 5, 2025.

Title of Series of Notes

CUSIP Numbers

Aggregate Principal
Amount
Outstanding

Consent Fee(1)

5.875% Senior Notes due 2027 | 70137TAP0 / C71968AB4 | US$500,000,000 | US$1.00
6.000% Senior Notes due 2028 | 70137WAB4 / 70137WAA6 | C$400,000,000 | C$1.00
4.375% Senior Notes due 2029 | 70137WAF5 / 70137WAE8 | C$600,000,000 | C$1.00
4.500% Senior Notes due 2029 | 70137WAG3 / C7196GAA8 | US$800,000,000 | US$1.00
4.625% Senior Notes due 2030 | 70137WAL2 / C7196GAB6 | US$800,000,000 | US$1.00
6.625% Senior Notes due 2032 | 70137WAN8 / C7196GAC4 | US$500,000,000 | US$1.00

(1) For each US$1,000 principal amount of US$ denominated notes (the “USD Notes”) or C$1,000 principal amount of C$ denominated notes (the “CAD Notes”), as applicable. US$0.50 or C$0.50 of the Consent Fees, as applicable, for each series of Notes, shall be due and payable promptly (and in any event within three business days) after the applicable Expiration Date, and US$0.50 or C$0.50 of the Consent Fees, as applicable for each Series of Notes, shall be due and payable on or prior to the closing date of the Transaction (or as promptly as practicable thereafter).

Under each Indenture, the consummation of the Transaction would constitute a Change of Control (as defined in such Indenture). A Change of Control Triggering Event with respect to a series of Notes (as defined in the applicable Indenture) would occur if a decrease by one or more gradations (including gradations within the ratings categories, as well as between categories) (a “Ratings Decline”) by certain ratings agency or agencies occur within 90 days before or after the earliest of (x) a Change of Control (as defined in the applicable Indenture), (y) the date of public notice of the occurrence of a Change of Control (as defined in the applicable Indenture) or (z) public notice of the intention of Parkland to effect a Change of Control (as defined in the applicable Indenture) (with such 90-day period to be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by an applicable rating agency). If a Change of Control Triggering Event (as defined in the applicable Indenture) with respect to a series of Notes occurs, each holder of such series would have the right to require Parkland to repurchase all or any part of such holder’s Notes of that series on the terms set forth in the applicable Indenture. If a Change of Control Offer (as defined in the applicable Indenture) is made with respect to a series of Notes, Parkland would be required to offer a cash payment equal to 101% of the principal amount of the Notes of that series to be purchased, plus accrued and unpaid interest. Subsequent to the announcement of the Transaction, Standard & Poor’s Rating Services, Moody’s Investor Services Inc. and DBRS Limited each released reports with respect to the Notes, none of which included a downgrade of the rating of the Notes or an announcement of consideration for possible downgrade of the rating of the Notes. Fitch Ratings, Inc. does not provide a rating with respect to the Notes.

Subject to the conditions described in the consent solicitation statement dated May 27, 2025, as amended from time to time (the “Consent Solicitation Statement”), Parkland is seeking consent from the holders of each series of Notes to amend the Indenture for each such series to (collectively, the “Proposed COC Amendments”):

a) eliminate Parkland’s potential obligation under such Indenture to make a “Change of Control Offer” (as defined in such Indenture) as a result of the Transaction; and

b) amend the defined term “Change of Control” in such Indenture to provide that Sunoco and its affiliates will be “Qualified Owners” of Parkland.

With respect to each series of the Notes, the adoption of the Proposed COC Amendments will require the valid and unrevoked consents of holders of at least a majority of the aggregate outstanding principal amount of such series as of the applicable Record Date (as defined below). Receipt of the requisite consent with respect to one series of Notes is not a condition to the completion of the Consent Solicitation with respect to any other series of Notes.

Each Consent Solicitation will expire at 5:00 p.m., Eastern Daylight Time, on June 9, 2025 (such date and time with respect to a Consent Solicitation, as the same may be terminated or extended by Parkland from time to time, in its sole discretion, the “Expiration Date”). Only holders of record of the USD Notes as of 5:00 p.m., Eastern Daylight Time, on May 23, 2025 and holders of record of the CAD Notes as of 5:00 p.m., Eastern Daylight Time, on May 26, 2025 (each, a “Record Date”), are eligible to deliver consents to the Proposed COC Amendments applicable to such series of Notes. Parkland may, in its sole discretion, abandon, terminate, amend or extend any Consent Solicitation with regard to a series of Notes at any time and from time to time as described in the Consent Solicitation Statement.

Only holders of Notes of a series as of the applicable Record Date who deliver valid and unrevoked consents to the Proposed COC Amendments on or prior to the earlier of the applicable Consent Time (as defined in the Consent Solicitation Statement) and the Expiration Date for such series shall receive the Consent Fees set forth in the table above, which are subject to the terms and conditions set forth in the Consent Solicitation Statement. Payment of the consent fees with respect to each series of Notes is subject to the satisfaction (or waiver) by Parkland of certain conditions, including receipt of the applicable requisite consents.

This press release is for informational purposes only and the Consent Solicitations are being made solely on the terms and subject to the conditions set forth in the Consent Solicitation Statement. Holders of any series of Notes are urged to read and carefully consider the information contained in the Consent Solicitation Statement for the detailed terms of the Consent Solicitation and the procedures for consenting to the Proposed COC Amendments. Further, this press release does not constitute an offer to sell or the solicitation of an offer to buy any series of Notes or any other securities. The Consent Solicitation Statement does not constitute a solicitation of consents in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such solicitation under applicable securities laws. Barclays Capital Inc. and RBC Capital Markets, LLC / RBC Dominion Securities Inc. are serving as solicitation agents with respect to the Consent Solicitations. D.F. King & Co., Inc. is serving as Information Agent and Tabulation Agent in connection with the Consent Solicitations with respect to the USD Notes. Computershare Investor Services Inc. is serving as Tabulation Agent in connection with the Consent Solicitations with respect to the CAD Notes. Questions or requests for assistance related to the Consent Solicitations or for additional copies of the Consent Solicitation Statement and other related documents may be directed to Barclays Capital Inc. and RBC Capital Markets, LLC / RBC Dominion Securities Inc. at (212) 528-7581, (212) 618-7843 and (416) 842-6311, respectively, or to D.F. King & Co., Inc. at (212) 269-5550 and (800) 659-5550.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release, the words “believes”, “expects”, “expected”, “will”, “plan”, “intends”, “target”, “would”, “seek”, “could”, “projects”, “projected”, “anticipates”, “estimates”, “continues” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things: the Transaction and the Consent Solicitations.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These forward-looking statements speak only as of the date hereof. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities laws. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements regarding the consummation of the Transaction, the Consent Solicitations, including the timing thereof, and the Proposed COC Amendments. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties. For more information, please see the risks and uncertainties described under the headings “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” in Parkland’s current Annual Information Form dated March 5, 2025, and under the headings “Forward-Looking Information” and “Risk Factors” included in the Q1 2025 Management’s Discussion and Analysis dated May 5, 2025, each as filed on SEDAR+ and available on Parkland’s website at www.parkland.ca.

The forward-looking statements contained herein are expressly qualified by this cautionary statement.

About Parkland Corporation

Parkland is a leading international fuel distributor, marketer, and convenience retailer with safe and reliable operations in 26 countries across the Americas. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide businesses with fuel to operate, complete projects and better serve their customers. In addition to meeting our customers’ needs for essential fuels, Parkland provides a range of choices to help them lower their environmental impact, including manufacturing and blending renewable fuels, ultra-fast EV charging, a variety of solutions for carbon credits and renewables, and solar power. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, we have developed supply, distribution and trading capabilities to accelerate growth and business performance.