TELUS closes C$1.7 billion of debt offerings
VANCOUVER, April 1, 2013
TELUS will redeem 2014 Notes early on May 15, 2013
VANCOUVER, April 1, 2013 /PRNewswire/ - TELUS announced today it has
successfully closed its previously announced offering of C$1.7 billion in
senior unsecured notes in two series - C$1.1 billion of 11-year Notes with a
3.35 per cent interest rate, Series CK, maturing on April 1, 2024 and C$600
million of 30-year Notes with a 4.40 per cent interest rate, Series CL,
maturing on April 1, 2043.
The net proceeds of the offering will be used to repay the Company's
outstanding C$300 million of 5.00 per cent Series CB Notes due June 3, 2013 at
maturity, to fund the proposed early redemption of the Company's outstanding
C$700 million of 4.95 per cent Series CF Notes due May 15, 2014, to repay
outstanding commercial paper (short term floating rate debt) and for general
The offering was made pursuant to a prospectus supplement dated March 26, 2013
to TELUS' short form base shelf prospectus dated October 3, 2011 filed with
securities regulatory authorities in Canada and the United States.
This media release does not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. The securities being
offered have not been approved or disapproved by any Canadian or U.S.
securities regulatory authority, nor has any authority passed upon the
accuracy or adequacy of the short form base shelf prospectus or the prospectus
Copies of the short form base shelf prospectus and the prospectus supplement
relating to the offering of the Notes filed with securities regulatory
authorities in Canada and the United States may be obtained from CIBC World
Markets Inc., Debt Capital Markets, 161 Bay Street, 5th floor, Toronto
Ontario, M5J 2S8 c/o Scott Burrows, telephone 416-956-3049 or e-mail
TELUS to redeem $700 million 2014 Notes early on May 15, 2013
TELUS announced today that it has given notice of redemption of its $700
million in 4.95 per cent, Series CF, Notes due May 15, 2014 (CUSIP #
87971MAJ2). The Company's intention to redeem these notes early was previously
announced on March 26, 2013.
The redemption price, which is payable on May 15, 2013, will be based on the
yield for a Government of Canada bond with the equivalent maturity plus 71
basis points pursuant to the trust indenture governing these notes, but in no
case will be less than par. The Government of Canada bond yield used for this
redemption will be the mid-market yield as quoted by a dealer selected by the
Company at noon (Toronto time) on May 10, 2013. The note-holders will also
receive the regularly scheduled semi-annual interest payment on May 15, 2013.
Costs and non-cash write-downs related to this early redemption are expected
to result in increased financing charges, which will have an after tax impact
on the Company's income statement in the second quarter of 2013 of
approximately 2.5 to 3 cents per share, after giving effect to the mid-April
two-for-one stock split announced on March 14, 2013.
Non-registered holders (banks, brokerage firms or other financial
institutions) of the notes that maintain their interests through The Canadian
Depository for Securities Limited (CDS) should contact their CDS customer
service representative with any questions about the note redemption.
Beneficial holders of the notes with questions about the redemption should
contact their respective brokerage firm or financial institution, which holds
interests in the notes on their behalf.
Forward Looking Statements
This media release contains forward looking statements. Forward looking
statements are not based on historical facts, but rather on current
expectations, Company assumptions and projections about future events,
including the repayment of the 5.00 per cent notes due June 3, 2013 and
completion of the redemption of the 4.95 per cent notes due May 15, 2014, and
are therefore subject to risks and uncertainties which could cause actual
results, performance or achievements to differ materially from the future
results expressed or implied by the forward looking statements. Such
statements are qualified in their entirety by the inherent risks and
uncertainties surrounding future expectations. Company assumptions and risk
factors are listed from time to time in TELUS' reports, public disclosure
documents, including TELUS' Management's discussion and analysis and Annual
Information Form, and in other filings with securities regulatory authorities
in Canada and the United States. Except as required by law, TELUS disclaims
any intention or obligation to update or revise forward-looking statements.
TELUS (TSX: T, NYSE: TU) is a leading national telecommunications company in
Canada, with $10.9 billion of annual revenue and 13.1 million customer
connections including 7.7 million wireless subscribers, 3.4 million wireline
network access lines, 1.4 million Internet subscribers and 678,000 TELUS TV
customers. Led since 2000 by President and CEO, Darren Entwistle, TELUS
provides a wide range of communications products and services including
wireless, data, Internet protocol (IP), voice, television, entertainment and
SOURCE TELUS Corporation
TELUS Investor Relations
TELUS Media and Social Relations
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