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

RE:RE:RE:Preferred Shares

[rad10]

Always thankful for James Hymas' blog - exceptional resource.  Surprised at his take though.  The last thing I want is an unlisted security, and the merger is a done deal.  The thinking there will be a persistent differential in the rating between the two merged entities is counter- intuitive.  HSE / CVE preferred - once merged - it's academic isn't it?

I bow to his detailed knowledge and expertise in this field.  I might send him an email.

cheers

Number13 wrote:

I think what James is saying is that Husky would still exist. It's assets would still be held in Husky. Thus when CVE refines  oil in a Husky refinery, there would have to be a contract between CVE and HSE. Husky would not be wound up. 

its a possibility to do this, but I don't think  this is the intention of CVE. They want all the assets under CVE, not a disjointed company. 

the problem with asking for $25 is that it might be too rich to work given how many pref shares are outstanding. If $25 was CVE's only option, they'd probably just rather walk way from the deal, or alternative just have the accounting pain in the a$$ with the paperwork and filings to keep HSE a separate entity. However, for something like 50% above the pref market price on Oct 23rd (as opposed to $25) that might be worth it for them to have the ability to wind up HSE into CVE. I'm holding out for a way better deal.