Telus completes redemption of 3.75% notes

Executive Summary

• Telus Corp. has completed the full redemption of its $600-million 3.75% notes, Series CV, due March 10, 2026.
• The redemption was funded by proceeds from a December 2025 offering of fixed-to-fixed-rate junior subordinated notes (hybrid notes), which raised approximately $2.9 billion.
• This action is part of a broader deleveraging strategy, with the company targeting a net debt to adjusted EBITDA ratio of approximately 3.0 times by the end of 2027.

Key Details

• Redemption Details: Full redemption of $600 million in outstanding 3.75% notes, Series CV, due March 10, 2026 (Cusip No. 87971MBC6).
• Financing Structure: The redemption was financed using proceeds from the December 2025 issuance of fixed-to-fixed-rate junior subordinated notes (hybrid notes).
• Gross Proceeds: The hybrid note offering raised the equivalent of $2.9 billion.
• Use of Proceeds: Proceeds were designated toward debt repayment, specifically including this redemption and the early redemption of seven other series of discounted notes.
• Additional Debt Activity: The broader refinancing initiative included the early redemption of seven series of discounted notes totaling $1 billion in cash proceeds, communicated on Dec. 10, 2025.
• Financial Metrics & Targets:
  • 2025 net debt to adjusted EBITDA is projected at approximately 3.4 times.
  • Target ratio of ~3.3 times or lower by year-end 2026.
  • Target ratio of approximately 3.0 times by the end of 2027.
• Strategic Rationale: Management cites a disciplined approach to balance sheet management, proactive debt maturity profile management, and creating financial flexibility to support capital allocation priorities.

Notable Quotes

• "This successful redemption demonstrates our disciplined approach to balance sheet management and our commitment to strengthening our financial foundation," said Doug French, executive vice-president and chief financial officer. "By pro-actively managing our debt maturity profile through strategic refinancing, we're creating greater financial flexibility to support our capital allocation priorities and drive long-term shareholder value."