RE:Husky preferred value???Cenovus will not redeem the the preferred shares.
There is allready a path curved out for the future of the preferreds in this situation. The last one was the Kinder Morgan preferreds to TC preferreds (exactly same terms only now under a new ticker). Cenovus as we all know does not currently have preferreds. A couple of things to keep in mind.
1). HSE preferreds have a credit rating of pfd-2l.
HSE long term debt is Fitch(BBB+) while CVE long term debt Fitch(BB+). CVE credit rating is 3 nothces below HSE. (This is a clear negative for the preferreds).
What will the credit rating for the new company be?
2). After the merger there will be a much bigger company behind the preferreds. This is very good for the preffereds. The risk of HSE going bankrupt was holding the preferreds down.
Assuming preferred holder will vote to convert to CVE preferreds, I think the preferreds will start moving up slowly to reflect the strenght of the new company.
Here you can get a better understanding of the
HSE preferreds