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

Shouldn't Preferreds be Redeemed for $25????

[RagingBull3]

"In the event of the liquidation, dissolution or winding-up of Husky or any other distribution of assets of Husky among its shareholders for the purpose of winding up its affairs, the holders of the Series 3 Preferred Shares shall be entitled to receive $25.00 per Series 3 Preferred Share plus all accrued and unpaid dividends thereon (less any tax required to be deducted and withheld by Husky) before any amount shall be paid or any property or assets of Husky shall be distributed to the holders of Husky’s common shares or to the holders of any other shares ranking junior to the Series 3 Preferred Shares in any respect. After payment to the holders of the Series 3 Preferred Shares of the amount so payable to them, they shall not, as such, be entitled to share in any further distribution of the property or assets of Husky."

Husky will no longer exist.    It's "affairs" as Husky is being wound up into Cenovus.

[RagingBull3]

Terms of Preferreds refer to "Husky".    Husky will no longer exist.   It's "affairs" are being wound up into Cenovus and Husky assets are being paid/distributed in Cenovus shares.   Husky Preferreds should be redeemed for $25/share. All just my interperation of the TERMS.  

[rad10]

I wish it were so too!  I was hoping for Husky to be taken private.  It's an all share merger. the synergy should improve the outlook considerably.

[pablo87]

You have both done well, deservedly so.  Your 6 months price range is $15 to $25 when you're sitting at $10 earning close to 10%, not too bad.  By the way, they could offer the prefs ~$20 and pay for that with the proceeds from the warrants I believe...it just seems like a Pourbaix thing to do tbh. #pureunalderatedspeculation

[borne2run]

RB, sorry to disappoint you, but that interpretation is wrong.  Husky is being acquired by Cenovus, the company is not being liquidated. BIG Difference. Some companies issue pref shares that must be redeemed under a merger / acquisition scenario. Husky's prefs have no such terms and conditions.

[RagingBull3]

"or any other distribution of assets of Husky among its shareholders for the purpose of winding up its affairs," Husky will no longer exist.    It's assets are being distributed in the form of Cenovus shares.   In your words, "Husky is being acqired by Cenovus".    So, basically Husky is being sold to Cenovus.   It's winding up

[rad10]

Raging I bought a whole whack of these when the bottom fell out of the market.  I was hoping for the company to be taken private - best case scenario for pref holders to get redeemed at par.  Realistically though buying a note or pref with a 15% yield at the time carried a huge default risk.  This is a GREAT outcome.  It's a much bigger company and the synergy

[borne2run]

Legal definitions matter. A merger is not "winding up its affairs", nor is it a "distribution of assets". Those words and phrases have very specific legal meanings. I also own some Husky preferred shares. But I do not expect a redemtpion for cash as there is no obligation to do so based on the terms of the issues..

[RagingBull3]

You can just as easily say Husky is being sold to Cenovus.   It's not what you call it "merger" "sold" ..... it's it's effect....  Husky "affairs" are being wound up.  It will no longer exist.   That's the bottom line.    If you want to get "legal" and Technical.    Legally, Husky will no

[GoldOilInvestor]

======================== borne2run said, Legal definitions matter. A merger is not "winding up its affairs", nor is it a "distribution of assets". Those words and phrases have very specific legal meanings. I also own some Husky preferred shares. But I do not expect a redemtpion for cash as there is no obligation to do so based on the terms of the issues.. =================