VANCOUVER – Telus has successfully closed its previously announced dual-tranche offering totaling $1.0 billion in senior unsecured notes.
The company said Tuesday that the net proceeds will be used to repay approximately $956 million of outstanding commercial paper and to fund the repayment, on maturity, of a portion of the $600 million principal amount outstanding on its series CI Notes due May 2016. The balance will be used for general corporate purposes.
"Our oversubscribed $1.0 billion debt offering demonstrates the confidence our investors have in Telus to successfully execute against our long-term growth strategy focused on core investments in our wireless and wireline advanced broadband networks and services for the benefit of our customers on a sustained basis," said Telus EVP and CFO John Gossling, in the news release. "Upon closing of our debt offering, the average term to maturity of Telus' long-term debt will be 11.1 years, as compared to 10.9 years at the end of 2014. Additionally, Telus' weighted average cost of long-term debt will decline to 4.32 per cent, as compared to 4.72 per cent at the end of 2014."
