DBRS Assigns an A (low) Rating, Stable Trend to Husky Energy Inc.’s Offering of Ten-Year Notes

DBRS Limited (DBRS) has today assigned an A (low) rating with a Stable trend to Husky Energy Inc.’s (Husky or the Company) offering of the $750 million principal amount of Ten-Year Notes due March 10, 2027 (the 2027 Notes). The 2027 Notes, whose closing Husky announced today, will be unsecured and unsubordinated and will rank pari passu with the Company’s other unsecured and unsubordinated indebtedness.

The net proceeds of the offering will be used for general corporate purposes, which may include, among other things, the repayment when due in September 2017 of Husky’s 6.20% notes in the principal amount of USD 300 million and the payment of the net contribution payable of CAD 146 million to BP-Husky Refining LLC due in December 2017.

DBRS notes that the issuance of the 2027 Notes marginally enhances the Company’s liquidity profile and financial flexibility by extending maturity and lowering the overall cost of debt.

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

The principal methodologies are Rating Companies in the Oil and Gas Industry (September 2016), DBRS Criteria: Preferred Share and Hybrid Security Criteria for Corporate Issuers (December 2016), and DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers (February 2017).