Husky Energy Inc. intends to raise approximately $1.0 billion by way of a public overnight-marketed offering of common shares (the 'Public Offering') and a concurrent private placement of common shares to the principal shareholders (the 'Private Placement').

The Company anticipates issuing approximately $293 million in common shares to the public and has filed a final universal base shelf prospectus with the securities regulatory authorities in all provinces of Canada in connection with the Public Offering. RBC Capital Markets and CIBC (the "Joint Bookrunners") will lead a syndicate of underwriters (collectively the 'Underwriters') for the proposed Public Offering. The final terms of the Public Offering will be determined by negotiation between the Company and the Underwriters.

Pursuant to the proposed Private Placement, each of L.F. Investments (Barbados) Limited and Hutchinson Whampoa Luxembourg Holdings S.à.r.l. (the 'Principal Shareholders') will subscribe for a combined total of $707 million in common shares on a private placement basis from the Company at the same price and terms as the Public Offering in order to retain their respective proportionate ownership in the Company after giving effect to the Private Placement and Public Offering. The Joint Bookrunners will act as joint agents on the proposed private placement.

The proceeds from this offering will be used for repayment of existing indebtedness, capital expenditures, corporate and asset acquisitions and other general corporate purposes.

The Offering is expected to close on or around December 7, 2010 and is subject to customary closing conditions.

Tags: Husky Energy Inc.