VANCOUVER – Saying it will use the proceeds to “strategically bring forward transformational capital investments in broadband connectivity, including fibre and 5G, enhancing our industry-best customer experience, leading networks and competitive position,” Telus today announced a share sales deal which will bring in $1.3 billion.
Officially, the company “entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and CIBC Capital Markets, and together with BMO Capital Markets, Scotiabank and TD Securities Inc. as joint book runners… pursuant to which the Underwriters have agreed to purchase from Telus, on a bought deal basis, and sell to the public, 51,300,000 common shares of Telus… at a price of C$25.35 per Common Share… for gross proceeds of approximately C$1.3 billion,” says the press release.
Telus has also granted the underwriters an over-allotment option which, if exercised in full, would see the gross offering size increase to approximately C$1.5 billion.
The company intends to use the net proceeds “to further strengthen the company’s balance sheet and, principally, to capitalize on a unique strategic opportunity to accelerate its broadband capital investment program, including the substantial advancement of the build-out of Telus PureFibre infrastructure in Alberta, British Columbia and Eastern Quebec, as well as an accelerated roll-out of the company’s national 5G network.”
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