TELUS Prices US$1.5 Bln And C$800 Mln Subordinated Notes Offerings

Telus CorpShs

11.80 EUR 3.51%

• Charts
• News
• Analysen

Kaufen Verkaufen

(RTTNews) - TELUS has announced the pricing of two major debt offerings, raising US$1.5 billion and C$800 million in aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes.

The US$1.5 billion issuance will be split into two series. The US$800 million Series C Notes, due June 9, 2056, will carry an initial interest rate of 6.375%. The rate will reset every five years beginning June 9, 2031, based on the Five-Year U.S. Treasury rate plus 2.694%, with a minimum of 6.375%. The US$700 million Series D Notes, also due June 9, 2056, will bear an initial interest rate of 6.625%. This rate will reset every five years starting June 9, 2036, at the Five-Year U.S. Treasury rate plus 2.515%, with a floor of 6.625%. The US Notes are being offered through a syndicate led by CIBC Capital Markets, BMO Capital Markets, TD Securities, and Wells Fargo Securities, with closing expected on or about December 9, 2025.

In addition, TELUS has priced C$800 million of Canadian Notes, also in two series. The C$400 million Series CAT Notes, due June 9, 2056, will carry an initial interest rate of 5.375%. The rate will reset every five years from June 9, 2031, at the prevailing five-year Government of Canada rate plus 2.470%, with a minimum of 5.375%. The C$400 million Series CAU Notes, due June 9, 2056, will bear an initial interest rate of 5.875%. This rate will reset every five years starting June 9, 2036, at the five-year Government of Canada rate plus 2.555%, with a floor of 5.875%. The Canadian Notes are offered through agents led by CIBC Capital Markets, BMO Capital Markets, and TD Securities, with closing also expected on or about December 9, 2025.

A portion of the net proceeds from both offerings will be used to fund a tender offer launched on December 4, 2025, to repurchase up to US$500 million of TELUS' outstanding long-term notes. These include the 3.95% Series CAB due 2050, 4.10% Series CAE due 2051, 4.40% Series CU due 2046, 4.40% Series CL due 2043, 4.70% Series CW due 2048, 2.85% Series CAF due 2031, and 4.75% Series CR due 2045. TELUS retains the discretion to adjust or waive the maximum purchase amount.

The remaining proceeds will be used to repay existing debt, including the redemption of all US$600 million outstanding on TELUS' 3.75% Series CV Notes due March 2026, as well as for general corporate purposes.