TELUS Announces Pricing of Cash Tender Offers for Eight Series of Debt Securities
TELUS Corporation (NYSE:TU) has announced the pricing terms for its previously announced cash tender offers to purchase eight series of outstanding notes. The company has accepted for purchase three series of notes with the following amounts: C$694.7 million of 3.95% Senior Notes due 2050, C$421.9 million of 4.10% Senior Notes due 2051, and C$266.8 million of 4.40% Senior Notes due 2046.
The tender offers' Financing Condition has been satisfied through TELUS's recent closing of a US$1.5 billion junior subordinated notes offering. Settlement for the accepted notes is expected to occur on July 3, 2025. Holders of accepted notes will receive the Total Consideration plus accrued and unpaid interest up to the Settlement Date.
The company has retained multiple financial institutions as dealer managers, including RBC Dominion Securities, BMO Nesbitt Burns, CIBC World Markets, Scotia Capital, and TD Securities as lead dealer managers, along with several co-dealer managers for the offers.
TELUS Corporation (NYSE:TU) ha annunciato le condizioni di prezzo per le sue precedenti offerte pubbliche di acquisto in contanti relative a otto serie di obbligazioni in circolazione. La societ脿 ha accettato di acquistare tre serie di obbligazioni per i seguenti importi: C$694,7 milioni di Senior Notes al 3,95% con scadenza 2050, C$421,9 milioni di Senior Notes al 4,10% con scadenza 2051 e C$266,8 milioni di Senior Notes al 4,40% con scadenza 2046.
La condizione di finanziamento per le offerte 猫 stata soddisfatta grazie alla recente chiusura da parte di TELUS di un'offerta di obbligazioni subordinate junior per 1,5 miliardi di dollari USA. Il regolamento delle obbligazioni accettate 猫 previsto per il 3 luglio 2025. I detentori delle obbligazioni accettate riceveranno il corrispettivo totale pi霉 gli interessi maturati e non pagati fino alla data di regolamento.
La societ脿 ha incaricato diverse istituzioni finanziarie come dealer manager, tra cui RBC Dominion Securities, BMO Nesbitt Burns, CIBC World Markets, Scotia Capital e TD Securities come dealer manager principali, insieme a vari co-dealer manager per le offerte.
TELUS Corporation (NYSE:TU) ha anunciado los t茅rminos de precio para sus ofertas p煤blicas de adquisici贸n en efectivo previamente anunciadas para comprar ocho series de bonos en circulaci贸n. La compa帽铆a ha aceptado comprar tres series de bonos por los siguientes montos: C$694.7 millones de Notas Senior al 3.95% con vencimiento en 2050, C$421.9 millones de Notas Senior al 4.10% con vencimiento en 2051 y C$266.8 millones de Notas Senior al 4.40% con vencimiento en 2046.
La condici贸n de financiamiento de las ofertas se ha cumplido gracias al reciente cierre de TELUS de una oferta de notas subordinadas junior por US$1.5 mil millones. Se espera que la liquidaci贸n de las notas aceptadas ocurra el 3 de julio de 2025. Los tenedores de las notas aceptadas recibir谩n la Consideraci贸n Total m谩s los intereses acumulados y no pagados hasta la fecha de liquidaci贸n.
La compa帽铆a ha contratado a m煤ltiples instituciones financieras como gerentes de colocaci贸n, incluyendo a RBC Dominion Securities, BMO Nesbitt Burns, CIBC World Markets, Scotia Capital y TD Securities como gerentes principales, junto con varios co-gerentes para las ofertas.
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TELUS Corporation (NYSE:TU) a annonc茅 les conditions de tarification pour ses offres publiques d'achat en esp猫ces pr茅c茅demment annonc茅es visant 脿 acqu茅rir huit s茅ries d'obligations en circulation. La soci茅t茅 a accept茅 d'acheter trois s茅ries d'obligations pour les montants suivants : 694,7 millions de dollars canadiens d'obligations senior 脿 3,95 % arrivant 脿 茅ch茅ance en 2050, 421,9 millions de dollars canadiens d'obligations senior 脿 4,10 % arrivant 脿 茅ch茅ance en 2051, et 266,8 millions de dollars canadiens d'obligations senior 脿 4,40 % arrivant 脿 茅ch茅ance en 2046.
La condition de financement des offres a 茅t茅 satisfaite gr芒ce 脿 la r茅cente cl么ture par TELUS d'une 茅mission d'obligations subordonn茅es juniors de 1,5 milliard de dollars am茅ricains. Le r猫glement des obligations accept茅es devrait avoir lieu le 3 juillet 2025. Les d茅tenteurs des obligations accept茅es recevront la contrepartie totale plus les int茅r锚ts courus et non pay茅s jusqu'脿 la date de r猫glement.
La soci茅t茅 a retenu plusieurs institutions financi猫res en tant que gestionnaires principaux, dont RBC Dominion Securities, BMO Nesbitt Burns, CIBC World Markets, Scotia Capital et TD Securities, ainsi que plusieurs co-gestionnaires pour ces offres.
TELUS Corporation (NYSE:TU) hat die Preisbedingungen f眉r seine zuvor angek眉ndigten Bar眉bernahmeangebote zum Kauf von acht ausstehenden Anleihenserien bekannt gegeben. Das Unternehmen hat den Kauf von drei Anleihenserien mit folgenden Betr盲gen akzeptiert: 694,7 Mio. C$ 3,95% Senior Notes f盲llig 2050, 421,9 Mio. C$ 4,10% Senior Notes f盲llig 2051 und 266,8 Mio. C$ 4,40% Senior Notes f盲llig 2046.
Die Finanzierungsbedingung f眉r die 脺bernahmeangebote wurde durch den k眉rzlichen Abschluss eines 1,5 Milliarden US-Dollar Junior-Subordinated-Notes-Angebots von TELUS erf眉llt. Die Abwicklung der akzeptierten Anleihen wird voraussichtlich am 3. Juli 2025 erfolgen. Die Inhaber der akzeptierten Anleihen erhalten die Gesamtabfindung zuz眉glich aufgelaufener und unbezahlter Zinsen bis zum Abwicklungstag.
Das Unternehmen hat mehrere Finanzinstitute als H盲ndler-Manager beauftragt, darunter RBC Dominion Securities, BMO Nesbitt Burns, CIBC World Markets, Scotia Capital und TD Securities als Haupt-H盲ndler-Manager sowie mehrere Co-H盲ndler-Manager f眉r die Angebote.
- Successfully secured refinancing through US$1.5 billion junior subordinated notes offering
- Strategic debt management through tender offers for three note series
- Engagement of multiple top-tier financial institutions as dealer managers indicating strong institutional support
- Significant cash outlay required for note repurchases
- Potential increase in interest expenses due to new subordinated notes issuance
Insights
TELUS is repurchasing ~C$1.38B of long-term debt after raising US$1.5B, effectively restructuring its liability profile.
TELUS has announced the pricing details for its previously announced tender offers to repurchase several series of its outstanding debt securities. The company is accepting for purchase C$694.7 million of its 3.95% Senior Notes due 2050, C$421.9 million of its 4.10% Senior Notes due 2051, and C$266.8 million of its 4.40% Senior Notes due 2046. The total debt being repurchased amounts to approximately C$1.38 billion.
The company is paying significant premiums over face value for these securities, reflecting current interest rate environments. For instance, the 2050 notes are being repurchased at C$848.56 per C$1,000 principal amount (an 84.9% premium), while the 2051 notes are priced at C$866.61 per C$1,000 (86.7% premium) and the 2046 notes at C$913.92 per C$1,000 (91.4% premium).
Importantly, TELUS has already satisfied the Financing Condition through a previously completed offering of US$1.5 billion in junior subordinated notes. This indicates a strategic liability management exercise where TELUS is effectively exchanging senior debt for junior subordinated debt, which typically carries different accounting and credit rating implications.
The tender offers are expected to settle on July 3, 2025. This debt repurchase program demonstrates TELUS's active management of its capital structure and long-term financing strategy, potentially optimizing its debt maturity profile and adjusting to changing market conditions.
The Offers
The Offers were made upon the terms and subject to the conditions set forth in the Offer to Purchase relating to the Notes. Capitalized terms used but not defined in this news release have the meanings given to them in the Offer to Purchase.
The table below sets out the aggregate principal amount of Notes accepted for purchase, the Reference Yield and the Total Consideration in respect of the Notes validly tendered and accepted for purchase pursuant to the Offers for such Notes.
Title of Notes(1) | Principal Amount Outstanding | 颁鲍厂滨笔听/听滨厂滨狈听 Nos.(1) | Reference Security | Bloomberg Reference Page | Reference Yield(2) | Fixed Spread (Basis Points)(2) | Total Consideration(3) | Principal Amount Accepted (in millions) |
87971MBP7 / CA87971MBP73 | 颁础狈听2戮 12/01/55 | 贵滨罢听 CAN0-50 | 3.579听% | +145 | ||||
87971MBT9 / CA87971MBT95 | 颁础狈听2戮 12/01/55 | 贵滨罢听 CAN0-50 | 3.579听% | +145 | ||||
87971MBS1 / CA87971MBS13聽 | 颁础狈听1录 06/01/30 | 贵滨罢听 CAN0-50 | - | +70 | - | - | ||
87971MBB8 / CA87971MBB87 | 颁础狈听2戮 12/01/55 | 贵滨罢听 CAN0-50 | 3.579听% | +150 | ||||
87971MAS2 / CA87971MAS22 | CAN 2戮 12/01/55 | 贵滨罢听 CAN0-50 | - | +150 | - | - | ||
87971MBV4 / CA87971MBV42 | 颁础狈听1陆 06/01/31 | 贵滨罢听 CAN0-50 | - | +90 | - | - | ||
87971MBE2 / CA87971MBE27 | 颁础狈听2戮 12/01/55 | 贵滨罢听 CAN0-50 | - | +160 | - | - | ||
87971MAY9 / CA87971MAY99 | 颁础狈听2戮 12/01/55 | 贵滨罢听 CAN0-50 | - | +160 | - | - |
______________ |
(1)聽 No representation is made by the Company as to the correctness or accuracy of the CUSIP number or ISIN listed in this news release or printed on the Notes. They are provided solely for convenience. |
(2) Reference Yield refers to the yield based on the bid-side price of the applicable Reference Security as specified in the table above, as quoted on the applicable Bloomberg Reference Page as of 11:00 a.m. (Eastern time) on June 30, 2025.聽The sum of the Reference Yield and the Fixed Spread is referred to as the "Offer Yield".聽 |
(3)聽 Per |
The Financing Condition as described in the Offer to Purchase has been satisfied as a result of the closing of the Company's previously announced offering of junior subordinated notes in an aggregate principal amount of
Settlement
Payment of the Total Consideration for the Notes accepted for purchase will be made by the Company on the "Settlement Date", which is expected to occur on July 3, 2025 (the "Settlement Date"). In addition to the Total Consideration, Holders whose Notes are accepted for purchase will receive a cash payment equal to the Accrued Coupon Payment, representing accrued and unpaid interest on such Notes from and including the immediately preceding interest payment date for such Notes to, but excluding, the Settlement Date. Holders whose Notes are accepted for purchase will lose all rights as a Holder of the tendered Notes and interest will cease to accrue on the Settlement Date for all Notes accepted in the Offer.
Following consummation of the Offer, any Notes that are purchased in the Offer will be retired and cancelled and no longer remain outstanding. All Notes not accepted for purchase by the Company will be returned without cost to the tendering Holders.
The Company has retained RBC Dominion Securities Inc. ("RBC"), BMO Nesbitt Burns Inc. ("BMO"), CIBC World Markets Inc. ("CIBC"), Scotia Capital Inc. ("Scotia") and TD Securities Inc. ("TD") to act as lead dealer managers and Desjardins Securities Inc., National Bank Financial Inc., J.P. Morgan Securities Canada Inc., SMBC Nikko Securities Canada, Ltd., Wells Fargo Securities Canada, Ltd. and ATB Securities Inc. to act as co-dealer managers (collectively, the "Dealer Managers") for the Offers. Questions regarding the terms and conditions for the Offers or for copies of the Offer to Purchase should be directed to RBC at 1-877-381-2099 (toll-free) or 1-416-842-6311 (collect), BMO at 1-833-418-0762 (toll-free) or 1-416-359-6359 (collect), CIBC at 1-416-594-8515 (collect), Scotia at 1-416-863-7438 (collect) or TD at 1-866-584-2096 (toll-free) or 1-416-982-6451 (collect). You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Offers.
Computershare Investor Services Inc. is acting as Tender Agent for the Offers.
If the Company terminates any Offer with respect to one or more series of Notes, it will give prompt notice to the Tender Agent, and all Notes tendered pursuant to such terminated Offer will be returned promptly to the tendering Holders thereof. With effect from such termination, any Notes blocked in CDS will be released.
Offer and Distribution Restrictions
The Offers were made solely pursuant to the Offer to Purchase. This news release does not constitute a solicitation of an offer to buy any securities in
In any jurisdiction in which the securities laws require the Offers to be made by a licensed broker or dealer, the Offers will be deemed to have been made on behalf of the Company by the Dealer Managers or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
This news release is for informational purposes only. This news release is not an offer to purchase or a solicitation of an offer to sell any Notes or any other securities of TELUS or any of its subsidiaries.
Forward-looking Statements
This news release contains statements about future events, including statements regarding the terms and timing for completion of the Offers, including the expected Settlement Date. By their nature, forward-looking statements require us to make assumptions and predictions and are subject to inherent risks and uncertainties including risks associated with capital and debt markets. There is significant risk that the forward-looking statements will not prove to be accurate. Forward-looking statements are provided herein for the purpose of giving information about the Offers referred to above. Readers are cautioned that such information may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from those described in the forward-looking statements. Accordingly, this news release is subject to the disclaimer and the qualifications and risk factors as set out in our 2024 annual management's discussion and analysis and in our first quarter 2025 management's discussion and analysis and in other TELUS public disclosure documents and filings with securities commissions in
About TELUS
TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company operating in more than 45 countries and generating over
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FAQ
What is the total amount of notes TELUS (TU) is purchasing in the tender offer?
When is the settlement date for TELUS's (TU) tender offers?
How did TELUS (TU) satisfy the Financing Condition for the tender offers?
Which financial institutions are acting as lead dealer managers for TELUS's (TU) tender offers?
What happens to TELUS (TU) notes that are purchased in the tender offer?
