OREANDA-NEWS. Husky Energy has completed its recently announced public offering of 8,000,000 Cumulative Redeemable Preferred Shares, Series 5 (the "Series 5 Shares") with a syndicate of underwriters led by TD Securities Inc. and RBC Capital Markets.

The aggregate gross proceeds to Husky from the completed upsized offering are USD 200 million.

The net proceeds of the offering will be used for the partial repayment of short term debt incurred in connection with the Company's U.S. refining operations.

The Series 5 Shares were offered by way of prospectus supplement to the short form base shelf prospectus of Husky Energy dated February 23, 2015.

Holders of the Series 5 Shares are entitled to receive a cumulative quarterly fixed dividend yielding 4.50 percent annually for the initial period ending March 31, 2020. Thereafter, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 3.57 percent.

Holders of Series 5 Shares will have the right, at their option, to convert their shares into Cumulative Redeemable Preferred Shares, Series 6 (the "Series 6 Shares"), subject to certain conditions, on March 31, 2020 and on March 31 every five years thereafter. Holders of the Series 6 Shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the 90-day Government of Canada Treasury Bill rate plus 3.57 percent.

The Series 5 Shares are listed on the Toronto Stock Exchange under the symbol HSE.PR.E.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the U.S. The Series 5 Shares have not been and will not be registered under the U.S. Securities Act of 1933. The Series 5 Shares are being offered and sold only outside the United States to non-U.S. Persons (as those terms are defined under Regulation S under the U.S. Securities Act) and may not be offered, sold, pledged or otherwise transferred in the United States or to U.S. Persons absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act.