Husky Energy tender for preferreds falls short of conversion trigger

By Rebecca Melvin

New York, March 18 – Husky Energy said 40,800 cumulative redeemable preferred shares, or series 5 shares, were tendered for conversion, which fell short of the one million shares required to effect conversions into cumulative redeemable preferred series 6 shares.

As a result, none of the series 5 shares will be converted into series 6 shares on March 31, the company said in a news release.

As previously reported, holders had the right to either retain any or all of their series 5 shares and continue to receive an annual fixed-rate dividend paid quarterly or convert on a one-for-one basis any or all of their series 5 shares into cumulative redeemable preferred shares, series 6, of Husky and receive a floating-rate quarterly dividend.

Holders of the series 5 shares will have the opportunity to convert their shares again on March 31, 2025 and every five years onwards as long as the shares remain outstanding.

The energy company is based in Calgary, Alta.

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