{"id":26955,"date":"2014-12-01T19:05:28","date_gmt":"2014-12-02T00:05:28","guid":{"rendered":"http:\/\/prefblog.com\/?p=26955"},"modified":"2014-12-01T19:05:28","modified_gmt":"2014-12-02T00:05:28","slug":"new-issue-hse-fixedreset-4-50313","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=26955","title":{"rendered":"New Issue: HSE FixedReset, 4.50%+313"},"content":{"rendered":"

Husky Energy has announced<\/a> that it:<\/p>\n

has agreed to issue to a syndicate of underwriters led by Scotia Capital Inc. and TD Securities Inc. (collectively the “Underwriters”) for distribution to the public 8,000,000 Cumulative Rate Reset Preferred Shares, Series 3 (the “Series 3 Shares”).<\/p>\n

The Series 3 Shares will be issued at a price of $25.00 per Series 3 Share, for aggregate gross proceeds of $200 million. Holders of the Series 3 Shares will be 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.<\/p>\n

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 rate plus 3.13 percent.<\/p>\n

Husky has granted the Underwriters an option, exercisable in whole or in part prior to closing, to purchase up to an additional 2,000,000 Series 3 Shares at the same offering price. The Series 3 Shares will be offered by way of prospectus supplement to the short form base shelf prospectus of Husky Energy dated December 31, 2012.<\/p>\n

The prospectus supplement will be filed with securities regulatory authorities in all provinces of Canada, except Quebec.<\/p>\n

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.<\/p>\n

The offering is expected to close on or about December 9, 2014, subject to customary closing conditions and receipt of required regulatory approvals.<\/p><\/blockquote>\n

This is a useful issue, as it provides a good distinction with HSE.PR.A, which is a FixedReset, 4.45%+173, which closed 2011-3-18<\/a>. One hundred and forty basis points difference in Issue Reset Spread is not to be sneezed at!<\/p>\n

Update, 2014-12-2<\/b> : Upsized<\/a>:<\/p>\n

Husky Energy (TSX:HSE) is increasing the size of its previously announced offering of Cumulative Rate Reset Preferred Shares, Series 3 (the “Series 3 Shares”) to 10 million shares, due to positive investor response.<\/p>\n

The aggregate gross proceeds from the upsized offering will be $250 million. Closing of the offering is expected on or about December 9, 2014, subject to customary closing conditions and receipt of required regulatory approvals.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Husky Energy has announced that it: has agreed to issue to a syndicate of underwriters led by Scotia Capital Inc. and TD Securities Inc. (collectively the “Underwriters”) for distribution to the public 8,000,000 Cumulative Rate …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-26955","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26955"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/26955\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}