TELUS prices $1.5B junior subordinated notes

2025-06-25 15:24

TELUS (NYSE:TU) priced an offering of $1.5B aggregate principal amount of fixed-to-fixed rate junior subordinated notes in two series.
The $700M 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 $800M 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 proceeds will be used to fund TELUS' previously announced tender offers, remaining for for the repayment of debt, and for other general corporate purposes.
The closing of the offering is expected to occur on or about June 27, 2025.

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