PrefBlog

Husky Energy has announced:

that it has completed its recently announced public offering of 10,000,000 Cumulative Rate Reset First Preferred Shares, Series 1 (the “Series 1 Shares”). The underwriting group led by CIBC, RBC Capital Markets and BMO Capital Markets (collectively the “Underwriters”) exercised their 2,000,000 Series 1 Shares over-allotment option in full, and accordingly, a total of 12,000,000 Series 1 Shares have been issued at a price of $25.00 per share for aggregate gross proceeds of $300 million.

The net proceeds from this offering will be used for repayment of existing indebtedness, capital expenditures, corporate and asset acquisitions and for general corporate purposes.

The Series 1 Shares were offered by way of prospectus supplement under the short form base shelf prospectus of Husky Energy dated November 26, 2010.

Holders of the Series 1 Shares are entitled to receive a cumulative quarterly fixed dividend yielding 4.45% annually for the initial period ending March 31, 2016. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 1.73%. Holders of Series 1 Shares will have the right, at their option, to convert their shares into Cumulative Rate Reset First Preferred Shares, Series 2 (the “Series 2 Shares”), subject to certain conditions, on March 31, 2016 and on March 31 every five years thereafter. Holders of the Series 2 Shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the three-month Government of Canada Treasury Bill yield plus 1.73%.

The Series 1 Shares are listed on the Toronto Stock Exchange under the ticker symbol HSE.PR. [sic]

HSE.PR.A is a FixedReset, 4.45%+173, announced March 10. The issue traded 540,247 shares today in a range of 24.70-95.

Vital statistics are:

HSE.PR.A is tracked by HIMIPref™ and assigned to the FixedReset subindex.

This entry was posted on Friday, March 18th, 2011 at 10:59 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.