DBRS Assigns Rating of Pfd-2 (low), Stable, to Husky Energy Inc.’s Preferred Share Issue

DBRS Limited (DBRS) has today assigned a rating of Pfd-2 (low) with a Stable trend to Husky Energy Inc.’s (Husky or the Company) Cumulative Redeemable Preferred Shares, Series 7 (Series 7 Preferred Shares), with a dividend rate of 4.60% per annum, payable quarterly for the initial five-year period ending June 30, 2020. The dividend rate will reset on June 30, 2020, and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 3.52%. The Series 7 Preferred Shares are redeemable by Husky on June 30, 2020, and on June 30 every five years thereafter. The Series 7 Preferred Shares will be issued for aggregate gross proceeds of $150 million.

DBRS notes that the Series 7 Preferred Shares rank pari passu with Husky’s currently outstanding Preferred Shares and are subordinated in right of payment to the Company’s debt securities. DBRS also notes that proceeds from the Series 7 Preferred Shares will be used for general corporate purposes which may include, among other things, the partial repayment of bank debt incurred by the Company to fund capital expenditures for the advancement of its near-term heavy-oil thermal projects.

Notes:
All figures are in Canadian dollars unless otherwise noted.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is Rating Companies in the Oil and Gas Industry (October 2014), which can be found on our website under Methodologies.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.