Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

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Husky Energy Inc. cumulative redeemable preferred > Chances of bankruptcy

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Comment by wheeloffortuneon Mar 11, 2020 4:33pm

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Post# 30795443

RE:RE:RE:RE:RE:RE:RE:Chances of bankruptcy

Yes, p.39 "Interest payable is based on Bankers’ Acceptance, CAD Prime Rate, U.S. LIBOR, or U.S. Base Rates, depending on the borrowing option selected and credit ratings assigned by certain credit rating agencies to the Company." Note "CAD Prime Rate." That's the 5 year bond rate. Then creditors add a couple hundred points above the bond rate as their profit spread.

Also important to note underneath "The Company was in compliance with the syndicated credit facility covenants at December 31, 2019, and assessed the risk of non-compliance to be low."

Note "Assessed risk low"

All very good news.

oilandgasmick wrote: Thanks Auto:

Looks like 400M due this year and then another big chunk in 2022 but should be manageable.

Those rates of around 4% could be refinanced at lower rates with credit line?