Husky Energy greenshoe exercise ups preferreds issue to C$300 million

By Susanna Moon

Chicago, March 18 - Husky Energy Inc. said its underwriters exercised their C$50 million over-allotment option for the issue of 4.45% five-year cumulative rate reset first preferred shares, bringing the total deal size to C$300 million.

Husky priced C$250 million of the series 1 preferreds at C$25 per share on March 10. The company sold a total of 12 million preferreds including the greenshoe exercise.

The preferreds yield a 4.45% annual dividend for the period ending March 31, 2016. After that, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 173 basis points.

CIBC World Markets Inc., RBC Capital Markets Corp. and BMO Capital Markets Corp. were the lead managers.

Proceeds will be used for the repayment of existing debt, for capital expenditures, for corporate and asset acquisitions and for general corporate purposes.

Husky Energy is an integrated energy company based in Calgary, Alta.

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