CVE.PR.A Prospectus

The following is a  set of excerpts from the prospectus document for the preferreds share. The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page.  The original document for CVE.PR.A Prospectus was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

HUSKY ENERGY INC. $250,000,000 10,000,000 Cumulative Redeemable Rate Reset Preferred Shares, Series 1 Husky Energy Inc. (“Husky”) is hereby qualifying the distribution (the “Offering”) of 10,000,000 cumulative redeemable preferred shares, series 1 (“Series 1 Preferred Shares”) of Husky at a price of $25.00 per Series 1 Preferred Share. See “Details of the Offering” and “Plan of Distribution”. The holders of Series 1 Preferred Shares will be entitled to receive, as and when declared by the board of directors of Husky out of moneys of Husky properly applicable to the payment of dividends, fixed cumulative preferential cash dividends for the initial period (the “Initial Fixed Rate Period”) from and including the date of issue of the Series 1 Preferred Shares to but excluding March 31, 2016, at an annual rate of 4.45% per annum, payable quarterly on the last day of March, June, September and December in each year (less any tax required to be deducted and withheld by Husky). If any such date is not a business day, the dividend will be paid on the next succeeding business day. Assuming an issue date of March 18, 2011, the first dividend, if declared, will be payable June 30, 2011, in the amount of $0.31699 per share.

Excerpt: Reset Date and Yield Terms

For each five-year period after the Initial Fixed Rate Period (each a “Subsequent Fixed Rate Period”, as defined herein), the holders of Series 1 Preferred Shares shall be entitled to receive, as and when declared by the board of directors of Husky, fixed cumulative preferential cash dividends, payable quarterly on the last day of March, June, September and December in each year, in the amount per share determined by multiplying one-quarter of the Annual Fixed Dividend Rate (as defined herein) for such Subsequent Fixed Rate Period by $25.00 (less any tax required to be deducted and withheld by Husky). The Annual Fixed Dividend Rate for the ensuing Subsequent Fixed Rate Period will be determined by Husky on the Fixed Rate Calculation Date (as defined herein) and will be equal to the sum of the Government of Canada Yield (as defined herein) on the Fixed Rate Calculation Date plus a spread of 1.73%. This spread will apply to both the Series 1 Preferred Shares and the Series 2 Preferred Shares described below, and remain unchanged over the life of the Series 1 Preferred Shares and the Series 2 Preferred Shares. See “Details of the Offering”.

Excerpt: Conversion Terms

Option to Convert into Series 2 Preferred Shares The holders of the Series 1 Preferred Shares will have the right to convert all or any of their shares into an equal number of cumulative redeemable preferred shares, series 2 of Husky (the “Series 2 Preferred Shares”), subject to certain conditions, on March 31, 2016 and on March 31 in every fifth year thereafter. The holders of the Series 2 Preferred Shares will be entitled to receive, as and when declared by the board of directors of Husky, quarterly floating rate cumulative preferential cash dividends payable on the last day of March, June, September and December in each year (each such quarterly dividend period is referred to as a “Quarterly Floating Rate Period”, as defined herein) in the amount per share determined by multiplying the Floating Quarterly Dividend Rate (as defined herein) for such Quarterly Floating Rate Period by $25.00 and multiplying that product by a fraction, the numerator of which is the actual number of days in such Quarterly Floating Rate Period and the denominator of which is 365 or 366, depending upon the actual number of days in the applicable year (less any tax required to be deducted and withheld by Husky). If any such date is not a business day, the dividend will be paid on the next succeeding business day. The Floating Quarterly Dividend Rate will be the annual rate of interest equal to the sum of the T-Bill Rate (as defined herein) on the applicable Floating Rate Calculation Date (as defined herein) plus a spread of 1.73%. See “Details of the Offering”