VANCOUVER – Telus is offering $1.2 billion of senior unsecured notes in two series, the first with a 10-year maturity, the second with a 30-year maturity.
Offered through a syndicate of agents led by RBC Capital Markets, BMO Capital Markets, and CIBC World Markets, the notes offering is expected to close on or about September 15, 2014.
The 3.75% 10-year notes, Series CQ, were priced at $99.775 per $100 principal amount for an effective yield of 3.777% per annum and will mature on January 17, 2025. The 4.75% 30-year notes, Series CR, were priced at $99.291 per $100 principal amount for an effective yield of 4.795% per annum and will mature on January 17, 2045.
The net proceeds will be used to repay indebtedness consisting of (a) advances on the 2014 credit facility and commercial paper issued to fund a substantial portion of the redemption of the company's $500 million Series CE Notes, and (b) other outstanding commercial paper, which was originally incurred for general corporate purposes. Pending any such use of the net proceeds, Telus will invest the net proceeds in bank deposits and short-term marketable securities.
"Our strong balance sheet and industry-leading leverage ratio provide Telus with the unique ability to continue to make core investments in our wireless and wireline broadband networks and services for the benefit of our customers, whilst simultaneously growing our dividend and executing on our share purchase programs on a sustained basis", said Telus executive chair Darren Entwistle, in the announcement.
