HSE.PR.C Resets Reset to 4.689%

Husky Energy has announced:

the fixed-rate quarterly dividend applicable to its Cumulative Redeemable Preferred Shares, Series 3 (Series 3 Shares) for the five-year period commencing December 31, 2019.

The fixed-rate dividend for the Series 3 Shares announced on December 2, 2019 was calculated on November 29, 2019 as 4.636%, representing the sum of the Canadian Government five-year bond yield of 1.506% plus 3.13%.

The new fixed-rate dividend for Series 3 Shares, based on a calculation as of December 2, 2019, is 4.689%, representing the sum of the Canadian Government five-year bond yield of 1.559% plus 3.13%.

The dividend rate applicable to the Cumulative Redeemable Preferred Shares, Series 4 for the three-month period commencing December 31, 2019 to, but excluding, March 31, 2020 remains unchanged at 4.782%, being equal to the annual rate for the most recent auction of 90-day Government of Canada Treasury Bills as of December 2, 2019 of 1.652% plus 3.13%.

This announcement cancels and corrects the previous announcement of a reset rate of 4.636%.

HSE.PR.C is a FixedReset, 4.50%+313, that commenced trading 2014-12-9 after being announced 2014-12-1. The issue is tracked by HIMIPref™ and is been assigned to the FixedResets-Discount subindex.

The initial announcement was quickly determined to be anomalous, but in contrast with the swift correction to AZP.PR.B, getting Husky to fix its error was something of a struggle. On December 9 I noted:

I sent another eMail via Husky Energy’s on-line form about their anomalous reset calculation for HSE.PR.C. Still no answer, but I’m not the only one querying them.

Yesterday I used their on-line form to submit the question again, and used the form to ask “General Inquiries” if their Investor Relations department was functional, and used Facebook to ask their social media people whether their on-line form and Investor Relations were functional. Social Media got back to me very quickly, by both eMail and FB Messenger, telling me that they’d forwarded my message. Whether or not it was this action that sparked a flurry of activity today, I’ll never know!

Many thanks are due to all those who sent other queries to Husky when it became apparent that they couldn’t be bothered to answer mine; particularly those who kept me abreast of their own progress: Assiduous Readers Avocado and peet and correspondents LC, JD and WP.

2 Responses to “HSE.PR.C Resets Reset to 4.689%”

  1. peet says:

    A quick post to thank you for all your efforts on behalf of HSE.PR.C holders! The entire process [and that also includes comments you and others made on other forums] has also left me with some lingering food for thought on issues such as quality control, governance, and the use of social media.

  2. avocado says:

    To echo Peet, much thanks for pointing this out in the first place and for the great work you do on your blog.

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