{"id":28231,"date":"2015-03-12T23:16:03","date_gmt":"2015-03-13T04:16:03","guid":{"rendered":"http:\/\/prefblog.com\/?p=28231"},"modified":"2015-03-12T23:16:03","modified_gmt":"2015-03-13T04:16:03","slug":"hse-pr-e","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=28231","title":{"rendered":"HSE.PR.E Firm On Good Volume"},"content":{"rendered":"

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

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.<\/p>\n

The aggregate gross proceeds to Husky from the completed upsized offering are $200 million.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

The Series 5 Shares are listed on the Toronto Stock Exchange under the symbol HSE.PR.E.<\/p><\/blockquote>\n

HSE.PR.E is a FixedReset, 4.50%+357, announced March 4<\/a>. It will be tracked by HIMIPref™ and has been assigned to the FixedReset subindex.<\/p>\n

The issue traded 743,664 shares today in a range of 24.85-99 before closing at 24.95-97. Vital statistics are:<\/p>\n

\n\n\n
HSE.PR.E<\/td>\nFixedReset<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2045-03-12
\nMaturity Price : 23.14
\nEvaluated at bid price : 24.95
\nBid-YTW : 4.42 %<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

I am as astonished as I was in the post announcing the issue<\/a> 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.<\/p>\n","protected":false},"excerpt":{"rendered":"

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. …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-28231","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28231","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=28231"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/28231\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}