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TELUS Corporation Cash Tender Offers

TELUS Corporation, a leading telecom and technology company, recently announced the pricing details of its cash tender offers for two outstanding series of debt securities. These offers, designed to streamline the company's financial obligations, enable investors to redeem their notes under favorable terms. The offers pertain to two separate series of notes, specifically the 4.600% Notes due November 16, 2048 and the 4.300% Notes due June 15, 2049. The cash purchase is indicative of TELUS's commitment to managing its debt efficiently and improving its capital structure.

Details of the Offers

On June 27, 2025, TELUS disclosed the pricing terms, which were calculated as of 2:00 PM (Eastern time) on the same day. The total consideration for the notes is structured as follows:

• - 4.600% Notes due November 16, 2048:

- Principal Amount Outstanding: US$750 million
- Total Consideration: US$834.11 per US$1,000 principal

• - 4.300% Notes due June 15, 2049:

- Principal Amount Outstanding: US$500 million
- Total Consideration: US$788.18 per US$1,000 principal

The total consideration represents the cash payment for each US$1,000 principal amount validly tendered, providing an attractive option for holders of these securities.

Offer Conditions and Process

The cash tender offers are conditioned on various factors, mainly ensuring the total principal amount purchased does not exceed US$750 million. Conditions also rely on TELUS successfully raising the necessary funds through debt issuances to settle the offers. Holders can tender their notes until the expiration date, which is set for 5:00 PM (Eastern time) on June 27, 2025. If investors choose to participate, they must adhere to certain stipulations detailed in the associated Offer to Purchase documentation.

Notably, investors are granted the option to withdraw their tendered notes until this expiration date, allowing for flexibility during the decision-making process. Furthermore, for those who deliver a Notice of Guaranteed Delivery, there is an extended deadline to validly tender notes.

Following the tender process, the settlement for all validly tendered notes is anticipated to occur four business days after the expiration date, which is expected to fall on July 3, 2025. At this point, holders winning acceptance will not only receive the total consideration but also a payment for accrued interest.

Strategic Implications

This move by TELUS is seen as a strategic effort to optimize its capital structure, especially amid fluctuating market conditions. By presenting such tender offers, TELUS is not just offering immediate liquidity but is also projecting confidence in its long-term financial health and business operations. Strengthening its balance sheet reflects TELUS's ongoing commitment to its investors and marks a key step towards sustainable growth.

The involvement of financial institutions like J.P. Morgan Securities LLC and RBC Capital Markets LLC as lead dealer managers further underscores the credibility of this financial maneuver. Investors are encouraged to reach out for queries around the terms and benefits of the tender offers, ensuring clarity during this transition.

Conclusion

Overall, TELUS Corporation's tender offer signifies a proactive approach to financial management. It opens avenues for investors to engage with their holdings in an informed manner, with beneficial terms laid out clearly by the company. As the deadline approaches, stakeholders are advised to make timely decisions to maximize their interests under this tender offer, following the guidelines supplied for participation. The ongoing financial strategies by TELUS paint a vibrant picture of the corporation's dedication to enhancing shareholder value and maintaining a robust market presence.