#Canada #Vancouver #Junior Subordinated Notes #TELUS

TELUS Launches $1.5 Billion Junior Subordinated Notes Offering

On June 24, 2025, TELUS Corporation, a leading communications technology company, announced that it has successfully priced an offering of USD 1.5 billion in aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes. This strategic move is aimed at bolstering the company’s financial foundation while providing investors with a stable income option.

Details of the Offering

The offering consists of two series of subordinated notes:
1. Series A Notes totaling USD 700 million, due on October 15, 2055, initially bearing an interest rate of 6.625%. This rate is set to reset every five years, beginning on October 15, 2030, with a benchmark rate equal to the Five-Year U.S. Treasury rate plus a spread of 2.769%.
2. Series B Notes amounting to USD 800 million, also maturing on October 15, 2055, but starting with an interest rate of 7.000%, resetting every five years starting October 15, 2035, with a comparable adjustment method as Series A, but with a spread of 2.709%.

Notably, throughout the reset periods, both series of notes will maintain a minimum interest rate, ensuring that investors are shielded from potential rate decreases in the future.

Underwriter and Closing Details

This well-structured offering is facilitated by a syndicate of prominent underwriters including J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC. The closing of the offering is anticipated to occur around June 27, 2025, pending the satisfaction of customary closing conditions, allowing TELUS to efficiently manage its debt obligations and financial strategies.

Fund Allocation

The net proceeds from the offering will primarily fund TELUS's previously announced tender offers. In instances where the tender offers are not fully realized, TELUS plans to allocate remaining funds towards debt repayment, including liabilities incurred from commercial paper, which is typically used for general corporate purposes. This approach underlines TELUS’s commitment to maintaining a sound financial structure.

Credit Assessment

Credit rating agencies providing evaluation for these subordinated notes have awarded 50% equity credit, reflecting a positive outlook regarding TELUS's capacity to manage and honor its obligations effectively. Such ratings are critical for investor confidence, underscoring the reliability of the instruments being offered.

Important Notices

Potential investors should be aware that these notes are being offered under a shelf registration statement and will be provided with comprehensive details in a prospectus supplement. Notably, the offering is not available in Canada except through exempt transactions — a critical factor for potential investors to consider beforehand.

About TELUS

TELUS is a global communications technology entity known for its relentless pursuit of excellence in customer service and social responsibility. With operations spanning over 45 countries, TELUS generates upwards of CAD 20 billion in annual revenue, catering to over 20 million customers with a suite of advanced broadband services. The company’s health services and agricultural innovations illustrate its commitment to leveraging technology for human betterment, thus enhancing lives in over 200 countries.

As part of TELUS's broader mission encapsulated in its 'give where we live' philosophy, the company has positively impacted its communities, contributing approximately CAD 1.8 billion in various forms of support since 2000.

For more details, investors can access TELUS’s public disclosure documents and filings available with Canadian and U.S. securities commissions, which outline the specifics of the offering and TELUS's service commitments even further.