#Canada #Vancouver #Debt Securities #Financial Stability #TELUS Corporation

Introduction

On December 12, 2025, TELUS Corporation announced significant updates regarding its cash tender offers for several series of debt securities. The corporation, which operates as a global leader in communication technology, decided to upsize its maximum purchase amount from C$500 million to an amount sufficient to fully accept all offers for its 3.95%, 4.10%, 4.40%, and 4.70% Notes. This move reflects TELUS's commitment to optimize its financial structure by managing its debt portfolio effectively.

Details of the Tender Offers

The tender offers focused on seven distinct series of notes, which are pivotal in ensuring TELUS’s liquidity and financial flexibility. According to almost C$1.874 billion worth of notes were validly tendered before the offers' expiration date on December 11, 2025. The various series include:

• - 3.95% Notes, Series CAB due February 2050
• - 4.10% Notes, Series CAE due April 2051
• - 4.40% Notes, Series CU due January 2046
• - 4.40% Notes, Series CL due April 2043
• - 4.70% Notes, Series CW due March 2048

Each type of note has specific characteristics that appeal to different investor preferences, providing TELUS with an array of financing options to match its capital needs.

Acceptance Amounts

The Corporation expects to accept all of the tendered amounts—C$31.9 million for the 3.95% Notes, C$28.9 million for the 4.10% Notes, C$173.5 million for the 4.40% Series CU Notes, C$467.4 million for the 4.40% Series CL Notes, and C$386.4 million for the 4.70% Series CW Notes. However, the offers for Notes Series CAF and CR were not accepted. This strategic move not only allows TELUS to reduce its debt burden but also supports future growth initiatives by retaining capital for investments in technology and infrastructure.

Financing Condition

To facilitate these tender offers, TELUS successfully completed concurrent offerings of junior subordinated notes totaling C$800 million and US$1.5 billion. This demonstrates the company’s proactive approach to restructuring its liabilities and ensuring financial robustness throughout evolving market conditions.

Pricing and Settlement Details

The pricing for the accepted notes is expected to occur at 11:00 AM (Eastern time) on December 12, 2025, followed by a public announcement detailing the Final Acceptance Amount and Total Consideration. The anticipated settlement date for the accepted notes is December 16, 2025. Holders of tendered notes will receive an Accrued Coupon Payment, ensuring a fair compensation as the company pivots towards a more optimized debt structure.

Strategic Implications

By engaging in these cash tender offers, TELUS is not merely responding to current pressures but strategically positioning itself for future growth. The process illustrates a robust financial management strategy, enabling the organization to lower its interest expenses and streamline its capital structure. As a result, TELUS is expected to sustain its operational excellence while continuing to deliver superior service quality to its expansive customer base.

Conclusion

In conclusion, TELUS Corporation's upsized cash tender offers signify a determined effort to reinforce its financial position in a competitive telecommunications landscape. By managing its debt portfolios actively, TELUS is poised to maintain its market-leading stance and ensure that it can invest in innovation and customer solutions continually. Stakeholders can look forward to further updates as the company completes the settlement process for these offers.

For inquiries regarding these offers, investors may contact the designated financial institutions involved or their local brokers for detailed assistance, ensuring transparency and accessibility throughout this process.