Park Lawn Corporation Announces $75 Million Bought Deal Offering of 5.75% Senior Unsecured Debentures

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TORONTO, June 25, 2020 (GLOBE NEWSWIRE) -- Park Lawn Corporation (TSX: PLC) (“PLC” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) co-led by CIBC Capital Markets and National Bank Financial Inc. under which the underwriters have agreed to purchase $75 million aggregate principal amount of listed senior unsecured debentures due December 31, 2025 (the “Debentures”) at a price of $1,000 per Debenture (the “Offering”). PLC has also granted the underwriters an option to purchase up to an additional $11.25 million aggregate principal amount of Debentures, on the same terms and conditions, exercisable in whole or in part, for a period of 30 days following closing of the Offering. The Offering is expected to close on or about July 14, 2020.

The Company intends to use the net proceeds of the Offering to pay down the Company’s revolving credit facility to free up capacity to fund potential future acquisition opportunities and for general corporate purposes.

The Debentures will be direct senior unsecured obligations of the Company and will rank (i) subordinate to all existing and future senior secured indebtedness of the Company, (ii) subordinate to all existing and future secured indebtedness that is not senior secured indebtedness, but only to the extent of the value of the assets securing such other secured indebtedness, (iii) pari passu with each debenture issued under the Indenture and with all other present and future unsubordinated indebtedness of the Company that is not senior secured indebtedness, including trade creditors, (iv) senior in right of payment to indebtedness of the Company that by its terms is subordinated in right of payment to the Debentures, and (v) structurally subordinated to all existing and future obligations, including indebtedness and trade payables, of the Company’s subsidiaries. The payment of principal and premium, if any, of, and interest on, the Debentures will be subordinated in right of payment to all senior secured indebtedness of the Company, as will be set forth in the Indenture under which the Debentures will be issued (the “Indenture”). The Indenture will not restrict the Company or its subsidiaries from incurring additional indebtedness or from mortgaging, pledging or charging its properties to secure any indebtedness or liabilities. None of the Company’s subsidiaries will guarantee the Debentures.