Parkland Fuel Corporation to Commence Trading on the Toronto Stock Exchange and Reviews Important Developments

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RED DEER, AB, Jan. 7 /CNW/ - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX: PKI), Canada's largest independent fuel distributer and marketer, today announced that the Toronto Stock Exchange ("TSX") issued a bulletin on January 6, 2011 announcing that the Corporation's shares and debentures will commence trading effective at the opening on Friday, January 7, 2011.  Parkland's common shares, 6.5% series 1 convertible unsecured subordinated debentures and 5.75% series 2 convertible unsecured subordinated debentures will commence trading today on the TSX under the symbols "PKI", "PKI.DB" and "PKI.DB.A", respectively.  


Security Name Old
Common Shares PKI.UN PKI 70137T 10 5
6.5% Convertible Unsecured Subordinated Debentures PKI.DB PK.DB 70137T AA 3
5.75% Convertible Unsecured Subordinated Debentures PKI.DB.A PKI.DB.A 70137T AB 1

In addition, Parkland also provided a review of important developments that took place during the holiday period in December 2010.

Completion of $45 Million Convertible Debenture Financing - December 21, 2010
On December 21, 2010, Parkland closed its previously announced offering of $45 million aggregate principal amount of convertible unsecured subordinated debentures. The Debentures will bear interest from the date of issue at 5.75% per annum, payable semi-annually in arrears on June 30 and December 31, commencing June 30, 2011.  Parkland will use the proceeds of the Offering to repay outstanding indebtedness, finance current and future growth opportunities that are expected to include a combination of organic growth initiatives and acquisitions, and for general corporate purposes.

New Incentives for Dividend Reinvestment Plan - December 22, 2010
On December 22, 2010 Parkland announced that upon conversion it would launch the new Premium Dividend™ and enhanced Dividend Reinvestment Plan of the Corporation (the "Plan") which will provide Canadian shareholders with new options to participate in the corporation's growth while maximizing value.  In addition to the option of receiving a monthly cash dividend of $0.085, shareholders of the Corporation ("Shareholders") who wish to participate in the Plan will be able to access the following new options:

  • The Premium Dividend™ - Paid in cash, this provides eligible shareholders with a 2% cash premium on top of their regular cash dividend and is well suited to most income-oriented investors (increases monthly income from $0.085/share to $0.0867/share); or
  • Dividend Reinvestment - Shareholders receive a 5% discount on shares purchased through the Dividend Reinvestment Plan which is well suited to most value-oriented investors.

Those shareholders who do not elect to participate in either component of the plan will still receive their regular monthly dividend of $0.085 per share. 

Shareholders who hold their shares through a broker and who wish to enroll should first contact their broker for information on how to enroll.  Shareholders who hold certificates in their own name who wish to enroll can find out more from Valiant Trust Company, as the Plan's Agent, through their website at or by calling 1-866-313-1872, or from Parkland through its website at or by calling 403-356-6722.

Island Petroleum Acquisition - December 30, 2010
On December 30, 2010, Parkland announced that it acquired Island Petroleum Products Ltd. ("Island Petroleum") based out of Prince Edward Island.  Island Petroleum, which generated more than 70 million litres of fuel sales last year, was acquired with a combination of cash and equity valued at $22.6 million (including working capital) effective December 30, 2010.

Island Petroleum is the leading independent heating fuel supplier on Prince Edward Island, and their focus on customer service excellence and reliable operations have allowed them to garner a loyal and growing customer base on Prince Edward Island

Suncor Contract to Terminate December 31, 2013 - December 31, 2010
On December 31, 2010 Parkland announced that, as expected, Suncor Energy Inc. ("Suncor") issued notice to terminate its current supply contract with Parkland on December 31, 2013.  Parkland currently purchases approximately one billion litres of fuel from Suncor annually under this agreement, which is priced using a formula by which Parkland shares in a portion of the refinery margins.

Suncor volumes currently account for less than a third of Parkland's total fuel supply, and the Fund is continually negotiating new supply agreements for its supply portfolio. In anticipation of receiving Suncor's notice of termination, Parkland has already started developing alternate supply options and related facilities to economically replace the fuel supply contract with Suncor.  Parkland does not anticipate any issues with replacing the supply contract for 2014.  

Parkland Income Fund Converts to a Corporation - December 31, 2010
On December 31, 2010, Parkland announced that it completed the previously announced conversion of Parkland Income Fund (the "Fund") to a corporation called "Parkland Fuel Corporation", (the "Conversion") pursuant to a plan of arrangement under the Business Corporations Act (Alberta).

The Conversion was approved at the annual and special meeting of securityholders (the "Meeting") of the Fund held on May 3, 2010, with more than 99 per cent of the securities represented at the Meeting voting in favour of the Conversion. In addition, the Court of Queen's Bench of Alberta issued its final order approving the Conversion on May 4, 2010. Pursuant to the Conversion, all outstanding units of the Fund and all outstanding class B units and class C units of Parkland Holdings Limited Partnership were exchanged for common shares in the capital of the Corporation (the "Common Shares") on a one-for-one basis.

Cautionary Statement Regarding Forward-Looking Information and Statements
Certain statements contained in this news release, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "propose", "plan", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statements").

In particular, this news release contains forward-looking information and statements relating to the expectations of the Fund and the administrator of the Fund regarding the proposed Arrangement including, but not limited to the timing of completion thereof.

These forward-looking information and statements are based on certain assumptions and analysis made by the Fund in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to the Fund's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Fund's expectations.  Such risks and uncertainties include, but are not limited to, the predicted use of proceeds of the convertible debenture, the ability of Parkland to economically replace its fuel supply contract with Suncor, ability to complete the Arrangement or to realize the anticipated benefits of the Arrangement.  Consequently, all of the forward-looking information and statements made in this news release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Fund will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Fund or its business or operations. Readers are therefore cautioned not to place undue reliance on such forward-looking information and statements. Except as may be required by law, the Fund assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events 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: Bluewave Energy, Columbia Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United Petroleum Products, Island Petroleum, Fas Gas Plus and Race Trac Gas.  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 units and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols PKI, PKI.DB and PKI.DB.A.

For further information:

For investor and media inquiries, or to be added to the email news alert service, please contact Tom McMillan, Investor Relations Manager at 403-356-6722 or