PrefBlog

Husky Energy has announced that it:

has completed its recently announced public offering of 10 million Cumulative Rate Reset Preferred Shares, Series 3 (the “Series 3 Shares”).

The aggregate gross proceeds to Husky from the completed upsized offering is $250 million.

The net proceeds from this offering will be used to further support the Company’s strong balance sheet and business plan as well as for general corporate purposes, which may include, among other things, the partial repayment of the 3.75% medium-term notes due in 2015.

The Series 3 Shares were offered by way of prospectus supplement dated December 2, 2014 under Husky’s existing short form base shelf prospectus.

Holders of the Series 3 Shares are entitled to receive a cumulative quarterly fixed dividend yielding 4.50 percent annually for the initial period ending December 31, 2019. Thereafter, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 3.13 percent.

Holders of Series 3 Shares will have the right, at their option, to convert their shares into Cumulative Rate Reset Preferred Shares, Series 4 (the “Series 4 Shares”), subject to certain conditions, on December 31, 2019 and on December 31 every five years thereafter. Holders of the Series 4 Shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the 90-day Government of Canada Treasury Bill yield plus 3.13 percent.

The Series 3 Shares are listed on the Toronto Stock Exchange under the symbol HSE.PR.C.

HSE.PR.C is a FixedReset, 4.50%+313, announced December 1. The issue will be tracked by HIMIPref™ and has been assigned to the FixedResets subindex.

The issue traded 764,846 shares today (consolidated exchanges) in a range of 24.70-05 before closing at 25.01-05. Vital statistics are:

This entry was posted on Wednesday, December 10th, 2014 at 12:03 am 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.