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

RE:Many Reasons why Preferreds Should be redeemed for $25

[RagingBull3]

RagingBull3 wrote: In my opinion:  

1)  Terms of the Preferreds require the Preferreds to be redeemed for $25 for the proposed transaction with Cenovus. 
 
2)  Preferred basically no different from DEBT.   Since cost of Preferreds (rates) are higher than currently what Husky is able to issue more Debt at, it makes Financial Sense to "refinance"/replace the Preferreds with lower cost Debt.

3)  There's a good chance of the rates of the Preferreds to skyrocket up in the future as they reset every 5 years.    Now Husky is able to get long term debt at low rates.  

4)  Paying down Debt, everyone understands.   Preferreds are basically DEBT.   Expensive Debt.

5)  Preferreds are not very Liquid.    A NICB would quickly drive the price up while only be able to collect a fraction of the outstanding shares, and it would take long time.     The Cards have been laid out on the table now.....Time is of the essence.    

6)  I'm sure Cenovus Shareholders not too keen of having the Preferred seemingly getting a "Free Lunch" on their Equity.    Equity will double but number of Preferred shares remain the same.   

7) Put TRUST back into the system.  

8)  I'm sure there's many more reasons others can add...... Like it will finally get me off this board...LOL.


Again, all just my opinion.   

9.  $25 is a benefit paid for.   It's not like something "free" and Preferred shareholders taking advanage.   It's a Benefit paid for.    It's one of the factors considered when I bought.  

10.  Terms do not allow the Preferreds to be converted into Commons or into shares of another company.

11.  Husky Effectively will not exist, effectively it's affairs would be wound up.  It's a Farce to have "shares" of effectively none existance company.     Complete mockery of system.

12.  Any "subsiduary" most likely will be under complete control of Cenovus.   To claim it is it's own "company" is yet another farce.


All just my opinion.