TELUS Prices Offering Of US$1.5 Bln Of Fixed-to-Fixed Rate Junior Subordinated Notes

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(RTTNews) - TELUS (T.TO, TU) announced it has priced an offering of US$1.5 billion aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes in two series.

According to the company, 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 company stated that 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.

TELUS expects to close the offering on or about June 27, 2025.

The company said it expects to use net proceeds from the offering to fund the company's 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, and for other general corporate purposes.

TELUS has been advised that credit rating agencies that have rated these Notes have assigned 50% equity credit to the Notes.