#Canada #Vancouver #Debt Securities #Cash Tender #TELUS Corporation

TELUS Increases Offer for Debt Securities

In a significant move, TELUS Corporation has recently announced enhancements to its cash tender offers for eight series of its outstanding debt securities. This strategic measure reflects the company's ongoing commitment to optimizing its financial structure and engaging effectively with its investors.

As of June 30, 2025, TELUS revealed that the cash tender offers have been amended to increase the maximum purchase amount significantly. The previous cap of C$600 million has now been adjusted to accommodate the full acquisition of the 3.95% Senior Notes, Series CAB due in February 2050, and the 4.10% Senior Notes, Series CAE due in April 2051. Additionally, the company will accept approximately C$261.9 million of the 4.40% Senior Notes, Series CU due in January 2046.

Overview of the Offers

The tender offers were initially set forth to allow holders of TELUS's outstanding notes to sell their securities back to the company at a premium. The principal amount validly tendered before the expiration date on June 27, 2025, reached an impressive C$3.1 billion, showcasing investor interest and confidence in TELUS’s financial stability.

Here's a detailed breakdown of the offers:

• - 3.95% Senior Notes, Series CAB due 2050: C$691.7 million tendered out of C$800 million outstanding.
• - 4.10% Senior Notes, Series CAE due 2051: C$421.9 million tendered out of C$500 million outstanding.
• - 4.40% Senior Notes, Series CU due 2046: C$436.5 million tendered, with C$261.9 million accepted on a pro-rata basis.

Other series such as the 2.05% Senior Notes, Series CAD due 2030 and 4.40% Senior Notes, Series CL due 2043 did not see any tendered amounts accepted in this round.

Factors Influencing the Tender Offer

The decision to increase the maximum purchase amount comes in the wake of closing a previously announced offering of junior subordinated notes amounting to $1.5 billion USD. The financing condition linked to this offering has been met, further enabling TELUS to navigate its capital structure adeptly.

The pricing process related to this tender offer is expected to occur at 11:00 AM Eastern Time on the same day, with the settlement date for the accepted notes tentatively scheduled for July 3, 2025. Investors holding notes that are accepted will cease to earn interest on those securities from the settlement date forward, marking a critical point in the transaction.

Insights into TELUS's Market Position

TELUS Corporation operates as a leading telecommunications and technology company, with operations spanning over 45 countries. With a robust annual revenue surpassing C$20 billion, TELUS has maintained a strong market position characterized by comprehensive broadband services for both consumers and businesses.

Throughout its history, TELUS has demonstrated a commitment to community engagement and customer-first philosophies, earning recognition for exceptional service quality and social responsibility. The company’s efforts in health technology through TELUS Health also speak to its forward-thinking strategies in leveraging technology to improve lives.

In summary, the recently amplified cash tender offers underscore TELUS’s tactical approach to managing its debt portfolio while bolstering investor relations. Observers in the financial community will undoubtedly watch closely as the settlement date approaches, anticipating further developments from this prominent telecommunications provider.

Conclusion

As TELUS positions itself strategically in the market, the latest moves highlight its adaptability and strong financial footing amidst evolving economic conditions. The increases in cash tender amounts illustrate a proactive stance in managing outstanding debt—a crucial aspect for maintaining investor confidence and ensuring future growth potential.