TELUS announced today it has priced an offering of US$1.5 billion aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes in two series (together, the "Notes").
The US$700 million Fixed-to-Fixed Rate Junior Subordinated Notes, Series A due October 15, 2055 will initially bear interest at an annual rate of 6.625% and reset every five years starting on October 15, 2030 at an annual rate equal to the Five-Year U.S. Treasury rate plus a spread of 2.769%, provided that the interest rate during any five-year interest period will not reset below 6.625%. The US$800 million Fixed-to-Fixed Rate Junior Subordinated Notes, Series B due October 15, 2055 will initially bear interest at an annual rate of 7.000% and reset every five years starting on October 15, 2035 at an annual rate equal to the Five-Year U.S. Treasury rate plus a spread of 2.709%, provided that the interest rate during any five-year interest period will not reset below 7.000%.
The Notes are offered through a syndicate of underwriters led by J.P Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC. Closing of the offering is expected to occur on or about June 27, 2025, subject to the satisfaction of customary closing conditions.
The net proceeds of this offering will be used to fund TELUS' previously announced tender offers. In the event that any tender offer is not consummated or not all of the net proceeds are used to fund the tender offers, TELUS intends to use the remaining net proceeds from this offering for the repayment of debt, including commercial paper (incurred for general corporate purposes), and for other general corporate purposes.