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

INSTANT POSITIVE CASH FLOW !!!!

[RagingBull3]

It's costing HSE 3.25% on recent borrowings.  Why wouldn't HSE use this CASH to buy investment that pay 9%.    Instant positive cash flow!!!  of 5.75%.   

9% is more than 3.25%, right???  

Husky's Preferreds come to mind....!!   or there are many other Debt/Preferreds offering much higher yields than 3.25%

Just crazy.

[Leopold]

This post has been removed in accordance with Community Policy

[RagingBull3]

Ya...But Cenovus is buying Husky....and as you see, they are NOT cancelling the Preferreds.   So if you borrow at 3% and then Cenovus pays you 9%... You make 5.25%.   Create a "subsidary" to buy the Preferreds where they won't get cancelled, get paid 9% but cost you 3.25%...Make 5.25%.   LOL..... see, how stupid.  9% is higher than 3%.... I'm