Parkland to use facility borrowings to fund CST assets acquisition

By Tali Rackner

Norfolk, Va., Aug. 22 – Parkland Fuel Corp. plans to use a C$545 million draw on a new secured revolving credit facility and a C$300 million bridge facility to fund its acquisition of certain Canadian assets of CST Brands, Inc., according to a press release.

Both facilities were fully underwritten by Toronto-Dominion Bank and National Bank of Canada as co-lead arrangers and joint bookrunners.

Under the agreement, Alimentation Couche-Tard Inc. is planning a roughly $4.4 billion acquisition of CST. Following the acquisition, Couche-Tard will sell the certain Canadian assets to Parkland for about $750 million, according to a separate release.

The Canadian assets that would be sold include: (a) CST's cardlock business; (b) CST's dealer and commission agents business; (c) CST's commercial and home energy business; (d) a number of company-operated stores to be determined following the Competition Bureau of Canada's review of the transaction; and (e) CST's Montréal corporate head office.

Parkland Fuel is a Red Deer, Alta.-based fuel and lubricant distributor and marketer. CST is San Antonio-based independent North American retailer of transportation fuels and convenience merchandise.

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