#Canada #Vancouver #TELUS #Junior Notes #Series CAS

TELUS Unveils $800 Million Junior Subordinated Note Offering

In a strategic move to bolster its financial health, TELUS Corporation, a leading communications technology company based in Canada, has announced the pricing of a substantial $800 million re-opening of its junior subordinated notes. This offering includes two series of notes: the 6.25% fixed-to-fixed rate junior subordinated notes (Series CAR) and the 6.75% fixed-to-fixed rate junior subordinated notes (Series CAS), both due on July 21, 2055.

Details of the Offering

The Series CAR notes have been priced at $102.625 per $100 principal, which equates to a re-opening yield of 5.612% per annum until July 21, 2030. Following this period, the interest rate will reset every five years to the prevailing five-year Government of Canada rate plus 3.482%, ensuring that the rate does not fall below 6.25% during any five-year interest period. On the other hand, the Series CAS notes have been priced at $104.500 per $100 principal, yielding 6.127% per annum until July 21, 2035, with similar reset conditions based on the Government of Canada rate plus 3.609%.

This offering will be facilitated through a syndicate of financial agents led by CIBC World Markets Inc., Scotia Capital Inc., and TD Securities Inc. The closing of this offering is expected to occur around June 19, 2025.

Objectives for the Proceeding Funds

The net proceeds raised from this note offering will primarily be directed towards reducing TELUS's outstanding debts, including decreasing the amount of commercial paper related to general working capital needs. Remaining proceeds are earmarked for other general corporate purposes and will be temporarily invested in short-term investment-grade securities, money market funds, or bank deposits.

Broader Context of TELUS Financial Strategy

TELUS has been proactive in managing its financial structure, and this recent note offering reflects its ongoing commitment to ensure that it maintains a solid balance sheet. Credit rating agencies have already acknowledged this issuance by assigning 50% equity credit to the notes, highlighting their supportive role in TELUS's capital structure.

As part of its strategic financial management, TELUS remains dedicated to optimizing operational efficiency and enabling substantial returns for its stakeholders. The company expresses confidence in its growth trajectory, which is vital to generating sustainable value for its customers, employees, and communities.

Furthermore, this offering comes at an important juncture as TELUS strives to enhance its competitive edge within the telecommunications industry. By strengthening its financial base, TELUS is positioning itself to invest in innovative technologies and services that meet the evolving demands of its client base.

Legal and Regulatory Notes

It’s crucial to note that this media release does not serve as an offer to sell or the solicitation of offers to purchase these securities. The notes being sold have not received approval from any Canadian securities regulatory authority, and no registrations have been filed under the U.S. Securities Act of 1933 for these securities. Investors interested in acquiring these notes should refer to the relevant prospectus supplement and short form base shelf prospectus dated August 2, 2024 for further details and guidelines.

About TELUS

TELUS operates as a world-leading communications technology enterprise, generating over $20 billion in annual revenue. With over 20 million customer connections, TELUS focuses heavily on delivering remarkable outcomes through an advanced suite of broadband services tailored for consumers, businesses, and the public sector. The company is committed to leading with empathy and purpose, as seen in its TELUS Health segment, which aims to enhance lives worldwide through preventive healthcare solutions.

For ongoing updates about TELUS and its financial initiatives, stakeholders are encouraged to visit TELUS's website or follow their media channels on social platforms.

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