Husky raises $300 million through share offering

Andrew Topf | March 18, 2011 | 10:49 pm Energy Canada

Husky Energy (TSX:HSE) has successfully raised $300 million through a public offering of 10 million preferred shares.

Shareholders will receive an annual dividend of 4.45%, paid out quarterly, for an initial period ending March 31, 2016. Thereafter the rate will be reset every 5 years, equivalent to a 5-year Government of Canada bond, plus 1.73%. Shareholders may also covert their shares into preferred (Series 2) shares, subject to certain conditions on March 31, 2016 or on the same date every five years thereafter.

Net proceeds from the offering will be used for debt repayment, capital expenditures, and asset acquisitions, the company stated.

Husky is involved in the extraction of heavy oil and oil sands, with operations in Western Canada, the East Coast of Canada, the US, China, Indonesia and Greenland. It has 44 billion barrels of discovered petroleum initially in place (PIIP) and about 2,162 square kilometres of undeveloped Alberta oil sands leases.