Husky Energy has announced that it:
has completed its recently announced public offering of 8,000,000 Cumulative Redeemable Preferred Shares, Series 5 (the “Series 5 Shares”) with a syndicate of underwriters led by TD Securities Inc. and RBC Capital Markets.
The aggregate gross proceeds to Husky from the completed upsized offering are $200 million.
The net proceeds of the offering will be used for the partial repayment of short term debt incurred in connection with the Company’s U.S. refining operations.
The Series 5 Shares were offered by way of prospectus supplement to the short form base shelf prospectus of Husky Energy dated February 23, 2015.
Holders of the Series 5 Shares are entitled to receive a cumulative quarterly fixed dividend yielding 4.50 percent annually for the initial period ending March 31, 2020. Thereafter, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 3.57 percent.
Holders of Series 5 Shares will have the right, at their option, to convert their shares into Cumulative Redeemable Preferred Shares, Series 6 (the “Series 6 Shares”), subject to certain conditions, on March 31, 2020 and on March 31 every five years thereafter. Holders of the Series 6 Shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the 90-day Government of Canada Treasury Bill rate plus 3.57 percent.
The Series 5 Shares are listed on the Toronto Stock Exchange under the symbol HSE.PR.E.
HSE.PR.E is a FixedReset, 4.50%+357, announced March 4. It will be tracked by HIMIPref™ and has been assigned to the FixedReset subindex.
The issue traded 743,664 shares today in a range of 24.85-99 before closing at 24.95-97. Vital statistics are:
| HSE.PR.E |
FixedReset |
YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2045-03-12
Maturity Price : 23.14
Evaluated at bid price : 24.95
Bid-YTW : 4.42 % |
I am as astonished as I was in the post announcing the issue at the lack of pricing differential between HSE.PR.C, which resets at +313bp on 2019-12-31, and this issue, which resets at +357bp on 2020-3-31, three months later. The former issue closed today at 24.55-60 to yield 4.14-13% to perpetuity, while HSE.PR.E closed at 24.95-97 to yield 4.42%-41 to perpetuity. That is one heck of a lot of yield difference.
This entry was posted on Thursday, March 12th, 2015 at 11:16 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.
HSE.PR.E Firm On Good Volume
Husky Energy has announced that it:
HSE.PR.E is a FixedReset, 4.50%+357, announced March 4. It will be tracked by HIMIPref™ and has been assigned to the FixedReset subindex.
The issue traded 743,664 shares today in a range of 24.85-99 before closing at 24.95-97. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2045-03-12
Maturity Price : 23.14
Evaluated at bid price : 24.95
Bid-YTW : 4.42 %
I am as astonished as I was in the post announcing the issue at the lack of pricing differential between HSE.PR.C, which resets at +313bp on 2019-12-31, and this issue, which resets at +357bp on 2020-3-31, three months later. The former issue closed today at 24.55-60 to yield 4.14-13% to perpetuity, while HSE.PR.E closed at 24.95-97 to yield 4.42%-41 to perpetuity. That is one heck of a lot of yield difference.
This entry was posted on Thursday, March 12th, 2015 at 11:16 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.