Husky’s bid for MEG has failed:
Husky Energy Inc. has abandoned its quest to acquire MEG Energy Corp. in a $3.3-billion hostile offer, confounding investors and triggering a selloff in MEG shares.
Husky said fewer than its threshold of two-thirds of MEG shares were tendered by a Wednesday deadline, so it chose to walk away and concentrate on its own business rather than extend the cash-and-stock offer. It had been widely expected to win its play for the oil-sands producer, as MEG had failed to attract a higher bid in a negative market for Canadian oil and gas stocks.
DBRS notes that:
As background, on September 30, 2018, Husky launched an unsolicited offer to MEG common shareholders by way of a takeover bid that required 66 2/3% of the total fully diluted shares tendered to Husky’s cash and share exchange offer. Husky’s offer had not been endorsed by MEG’s Board. At that time, DBRS did not take any rating action due to the uncertainties regarding the outcome of Husky’s offer for MEG.
…
Because Husky is not proceeding with the offer for MEG, DBRS plans no rating action at the current time.
Moody’s considers the termination to be credit-positive for Husky.
As I reported on October 1 and again on November 11 because it was so much fun the first time, S&P put Husky on Watch-Negative due to:
the potential deterioration of Husky’s cash flow and leverage metrics, with the addition of MEG’s existing C$3.6 billion of debt (at June 30, 2018), and the resulting deterioration of the company’s financial risk profile, which could lead to a downgrade.
There is no word from them at this time, but when they do comment this news will get its own post. Maybe two of them!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4194 % | 2,410.7 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.4194 % | 4,423.5 |
| Floater | 4.85 % | 5.20 % | 36,241 | 15.16 | 4 | -0.4194 % | 2,549.3 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0905 % | 3,203.8 |
| SplitShare | 4.94 % | 5.01 % | 65,237 | 4.02 | 8 | 0.0905 % | 3,826.0 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0905 % | 2,985.2 |
| Perpetual-Premium | 5.89 % | -10.29 % | 160,660 | 0.08 | 2 | 0.0594 % | 2,897.2 |
| Perpetual-Discount | 5.58 % | 5.65 % | 78,831 | 14.33 | 33 | -0.1122 % | 2,976.1 |
| FixedReset Disc | 4.99 % | 5.40 % | 206,418 | 14.90 | 63 | -0.7058 % | 2,262.0 |
| Deemed-Retractible | 5.36 % | 6.28 % | 84,485 | 8.18 | 27 | -0.2457 % | 2,952.2 |
| FloatingReset | 4.07 % | 4.58 % | 44,691 | 2.90 | 7 | -0.6978 % | 2,471.8 |
| FixedReset Prem | 5.11 % | 4.42 % | 236,652 | 2.20 | 17 | -0.0852 % | 2,527.1 |
| FixedReset Bank Non | 2.99 % | 3.63 % | 117,972 | 0.11 | 6 | -0.0966 % | 2,568.2 |
| FixedReset Ins Non | 4.88 % | 6.55 % | 139,188 | 8.37 | 22 | 0.0925 % | 2,252.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| BAM.PR.Z | FixedReset Disc | -3.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.41 Evaluated at bid price : 21.73 Bid-YTW : 5.56 % |
| SLF.PR.G | FixedReset Ins Non | -3.23 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.00 Bid-YTW : 8.95 % |
| NA.PR.G | FixedReset Disc | -3.12 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.89 Evaluated at bid price : 22.36 Bid-YTW : 5.27 % |
| MFC.PR.M | FixedReset Ins Non | -2.81 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.39 Bid-YTW : 7.28 % |
| PWF.PR.Q | FloatingReset | -2.58 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 15.84 Evaluated at bid price : 15.84 Bid-YTW : 5.09 % |
| BMO.PR.S | FixedReset Disc | -2.17 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.81 Evaluated at bid price : 19.81 Bid-YTW : 5.39 % |
| NA.PR.W | FixedReset Disc | -2.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 18.53 Evaluated at bid price : 18.53 Bid-YTW : 5.57 % |
| PWF.PR.A | Floater | -1.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 17.02 Evaluated at bid price : 17.02 Bid-YTW : 4.11 % |
| RY.PR.H | FixedReset Disc | -1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.87 Evaluated at bid price : 19.87 Bid-YTW : 5.28 % |
| HSE.PR.C | FixedReset Disc | -1.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.53 Evaluated at bid price : 19.53 Bid-YTW : 6.44 % |
| TRP.PR.G | FixedReset Disc | -1.85 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 20.12 Evaluated at bid price : 20.12 Bid-YTW : 5.96 % |
| BIP.PR.E | FixedReset Disc | -1.83 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 22.07 Evaluated at bid price : 22.58 Bid-YTW : 5.56 % |
| TD.PF.K | FixedReset Disc | -1.70 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.99 Evaluated at bid price : 22.50 Bid-YTW : 5.03 % |
| BNS.PR.I | FixedReset Disc | -1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 22.50 Evaluated at bid price : 23.42 Bid-YTW : 4.72 % |
| CM.PR.O | FixedReset Disc | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.51 Evaluated at bid price : 19.51 Bid-YTW : 5.39 % |
| SLF.PR.J | FloatingReset | -1.57 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 15.07 Bid-YTW : 8.75 % |
| MFC.PR.J | FixedReset Ins Non | -1.56 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.50 Bid-YTW : 6.48 % |
| CM.PR.R | FixedReset Disc | -1.54 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 22.39 Evaluated at bid price : 23.02 Bid-YTW : 5.50 % |
| NA.PR.S | FixedReset Disc | -1.51 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.52 Evaluated at bid price : 19.52 Bid-YTW : 5.49 % |
| NA.PR.E | FixedReset Disc | -1.45 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.11 Evaluated at bid price : 21.11 Bid-YTW : 5.33 % |
| IAF.PR.B | Deemed-Retractible | -1.42 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.50 Bid-YTW : 6.46 % |
| MFC.PR.L | FixedReset Ins Non | -1.42 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 18.80 Bid-YTW : 7.45 % |
| BMO.PR.T | FixedReset Disc | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.72 Evaluated at bid price : 19.72 Bid-YTW : 5.30 % |
| CM.PR.P | FixedReset Disc | -1.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.13 Evaluated at bid price : 19.13 Bid-YTW : 5.38 % |
| SLF.PR.H | FixedReset Ins Non | -1.38 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 17.83 Bid-YTW : 7.63 % |
| TD.PF.D | FixedReset Disc | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.35 Evaluated at bid price : 21.65 Bid-YTW : 5.29 % |
| PWF.PR.T | FixedReset Disc | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 5.50 % |
| RY.PR.O | Perpetual-Discount | -1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 23.56 Evaluated at bid price : 24.00 Bid-YTW : 5.16 % |
| IAF.PR.I | FixedReset Ins Non | -1.23 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.73 Bid-YTW : 5.98 % |
| RY.PR.M | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.11 Evaluated at bid price : 21.11 Bid-YTW : 5.29 % |
| TD.PF.A | FixedReset Disc | -1.22 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.51 Evaluated at bid price : 19.51 Bid-YTW : 5.29 % |
| TD.PF.B | FixedReset Disc | -1.21 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 19.58 Evaluated at bid price : 19.58 Bid-YTW : 5.31 % |
| PWF.PR.F | Perpetual-Discount | -1.20 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 22.72 Evaluated at bid price : 23.01 Bid-YTW : 5.71 % |
| BNS.PR.F | FloatingReset | -1.12 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2022-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.85 Bid-YTW : 4.58 % |
| CM.PR.Q | FixedReset Disc | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.06 Evaluated at bid price : 21.06 Bid-YTW : 5.44 % |
| RY.PR.S | FixedReset Disc | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 22.24 Evaluated at bid price : 22.95 Bid-YTW : 4.85 % |
| BAM.PF.I | FixedReset Prem | -1.07 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2022-03-31 Maturity Price : 25.00 Evaluated at bid price : 24.95 Bid-YTW : 4.97 % |
| MFC.PR.N | FixedReset Ins Non | -1.04 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 19.09 Bid-YTW : 7.38 % |
| BAM.PR.C | Floater | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 13.41 Evaluated at bid price : 13.41 Bid-YTW : 5.20 % |
| BAM.PF.E | FixedReset Disc | -1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 20.24 Evaluated at bid price : 20.24 Bid-YTW : 5.53 % |
| GWO.PR.T | Deemed-Retractible | -1.00 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 22.72 Bid-YTW : 6.39 % |
| RY.PR.J | FixedReset Disc | 1.09 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.30 Evaluated at bid price : 21.30 Bid-YTW : 5.41 % |
| TRP.PR.D | FixedReset Disc | 1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 18.33 Evaluated at bid price : 18.33 Bid-YTW : 5.84 % |
| BAM.PR.K | Floater | 1.60 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 13.33 Evaluated at bid price : 13.33 Bid-YTW : 5.23 % |
| MFC.PR.Q | FixedReset Ins Non | 1.67 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.35 Bid-YTW : 6.52 % |
| TRP.PR.A | FixedReset Disc | 1.69 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 16.27 Evaluated at bid price : 16.27 Bid-YTW : 5.86 % |
| TRP.PR.B | FixedReset Disc | 2.36 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 13.42 Evaluated at bid price : 13.42 Bid-YTW : 5.79 % |
| IAF.PR.G | FixedReset Ins Non | 3.14 % | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2030-01-31 Maturity Price : 25.00 Evaluated at bid price : 21.00 Bid-YTW : 6.49 % |
| MFC.PR.K | FixedReset Ins Non | 16.78 % | Just a reversal, finally, of the nonsense of January 17.
YTW SCENARIO |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| BNS.PR.R | FixedReset Bank Non | 112,800 | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-02-25 Maturity Price : 25.00 Evaluated at bid price : 24.98 Bid-YTW : 3.63 % |
| RY.PR.C | Deemed-Retractible | 106,600 | YTW SCENARIO Maturity Type : Call Maturity Date : 2019-02-16 Maturity Price : 25.00 Evaluated at bid price : 25.23 Bid-YTW : 1.67 % |
| TD.PF.H | FixedReset Prem | 89,512 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.18 Bid-YTW : 4.53 % |
| TD.PF.E | FixedReset Disc | 67,510 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.67 Evaluated at bid price : 22.10 Bid-YTW : 5.25 % |
| BNS.PR.E | FixedReset Prem | 59,600 | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-25 Maturity Price : 25.00 Evaluated at bid price : 25.75 Bid-YTW : 4.06 % |
| TD.PF.D | FixedReset Disc | 59,292 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2049-01-17 Maturity Price : 21.35 Evaluated at bid price : 21.65 Bid-YTW : 5.29 % |
| There were 41 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| HSE.PR.E | FixedReset Disc | Quote: 20.70 – 22.25 Spot Rate : 1.5500 Average : 0.9394 YTW SCENARIO |
| GWO.PR.Q | Deemed-Retractible | Quote: 22.54 – 23.75 Spot Rate : 1.2100 Average : 0.7876 YTW SCENARIO |
| MFC.PR.L | FixedReset Ins Non | Quote: 18.80 – 19.80 Spot Rate : 1.0000 Average : 0.6355 YTW SCENARIO |
| ELF.PR.H | Perpetual-Discount | Quote: 23.82 – 24.82 Spot Rate : 1.0000 Average : 0.6904 YTW SCENARIO |
| PWF.PR.F | Perpetual-Discount | Quote: 23.01 – 23.49 Spot Rate : 0.4800 Average : 0.3315 YTW SCENARIO |
| BAM.PR.Z | FixedReset Disc | Quote: 21.73 – 22.23 Spot Rate : 0.5000 Average : 0.3605 YTW SCENARIO |