#Canada #Vancouver #Debt Securities #cash tender offers #TELUS Corporation

TELUS Corporation Finalizes Pricing for Cash Tender Offers on Multiple Debt Series

On June 30, 2025, TELUS Corporation, one of the leading communications technology companies in Canada, made a significant announcement regarding its ongoing financial activities. The company revealed the pricing terms for its previously declared cash tender offers aimed at purchasing certain series of debt securities. This strategic move is designed to enhance TELUS's overall financial health and enable future investment opportunities.

Overview of the Offers

The recently announced offers, referred to collectively as the "Offers," target multiple series of TELUS's outstanding Senior Notes. The company indicated that it intends to buy back a selected amount of these notes utilizing cash resources, thus optimizing its debt structure. According to the Offer to Purchase dated June 20, 2025, the Maximum Purchase Amount has been earmarked for these transactions, pointing to a comprehensive restructuring effort.

The details of the offers were meticulously laid out in the Offer to Purchase document, which also defined various critical terms and conditions. Notably, the announcement included specifics about the aggregate principal amounts accepted for purchase across the different series of notes, alongside their corresponding Reference Yields and Total Considerations.

Detailed Summary of Accepted Notes

Title of Notes	Principal Amount Outstanding (in millions)	Total Consideration (C$ per C$1,000)	Reference Yield (%)
----	----------	--------	-----
3.95% Senior Notes, Series CAB due February 2050	800	848.56	3.579
4.10% Senior Notes, Series CAE due April 2051	500	866.61	3.579
2.05% Senior Notes, Series CAD due October 2030	500	-	-
4.40% Senior Notes, Series CU due January 2046	500	913.92	3.579
Additional series were also included with various consideration amounts.

The offers aim to simplify the company's debt portfolio, effectively reducing its interest burden and enhancing operational flexibility.

Conditions and Closing Process

The Offers were contingent upon satisfying specific financing conditions, which TELUS successfully met following a significant offering of junior subordinated notes totaling US$1.5 billion. As a result of meeting these conditions, TELUS can progress towards the settlement phase qualified for the upcoming Settlement Date set for July 3, 2025.

During the settlement process, participants whose notes have been accepted will not only receive the Total Consideration but will also obtain cash payments reflecting accrued coupon interests. It is noteworthy for holders that upon acceptance, their rights as noteholders will cease, and interest will stop accruing post-settlement.

Involvement of Dealer Managers

To facilitate these offers, TELUS has engaged leading firms such as RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., and TD Securities Inc. as dealer managers. These firms will oversee the tender process and assist stakeholders in addressing inquiries related to the offers and terms.

Looking Forward

The strategic execution of the Offers not only reflects TELUS's commitment to maintaining financial agility but also demonstrates a proactive approach to capital management. By recalibrating its debt load, TELUS aims to bolster its capacity for future investments that will ultimately benefit its consumer base and contribute to sustained growth in the competitive telecommunications landscape.

In conclusion, through these cash tender offers, TELUS Corporation takes a decisive step in refining its financial infrastructure, aimed at achieving resilience amid evolving market conditions. The sheer scale of the offering underscores TELUS's ambition to remain at the forefront of the communications technology sector, all while serving its commitment to its customers and communities. For further updates and details, stakeholders and interested parties can follow @TELUSNews on X.