TELUS Corporation
TSX : T
NYSE : TU

TELUS Corporation

March 06, 2017 11:00 ET

TELUS closes US and Canadian debt offerings

TELUS further lowers average cost of long-term debt to 4.16 per cent

Average term to maturity of long-term debt increased to 11.4 years

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2017) - (TSX:T)(NYSE:TU) - TELUS announced today it has successfully closed its previously announced offering of US$500 million of senior unsecured 3.70 per cent 10-year notes, maturing on September 15, 2027 (the "US Notes") as well as C$325 million of senior unsecured 4.70 per cent 31-year notes, maturing March 6, 2048 (the "Canadian Notes").

"Through these concurrent dual currency debt offerings, pro-forma our March 15 maturity, TELUS further lowered its weighted average cost of long-term borrowing to 4.16 per cent from 4.23 per cent at the end of 2016," said Doug French, TELUS Executive Vice-President and CFO. "In addition, over the last three years of heightened capital investment and spectrum purchases, our average cost of long-term debt has declined from approximately 5 per cent. Meanwhile, with the issuance of the 2048 notes, we have successfully increased the average term to maturity of our long-term debt by a full year to 11.4 years and up from 9.4 years since the end of 2013."

The US Notes were offered through a syndicate of underwriters led by Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBC Capital Markets, LLC, BMO Capital Markets Corp., and CIBC World Markets Corp. The Canadian Notes were offered through a syndicate of agents led by CIBC Capital Markets, BMO Nesbitt Burns and RBC Capital Markets.

The net proceeds of both offerings will be used to fund the repayment, on maturity, of C$700 million of the principal amount outstanding on TELUS' Series CD Notes due March 15, 2017, to repay a portion of outstanding commercial paper and for general corporate purposes.

TELUS has fully hedged the principal and interest obligations of the US Notes against fluctuations in the Canadian dollar foreign exchange rate for the entire term of the notes.

The two offerings were made pursuant to two prospectus supplements dated March 1, 2017 to TELUS' amended and restated short form base shelf prospectus dated August 30, 2016 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 US Notes or Canadian Notes in any jurisdiction. The securities being offered have not been approved or disapproved by any Canadian or United States securities regulatory authority, nor has any authority passed upon the accuracy or adequacy of the amended and restated short form base shelf prospectus or the prospectus supplements.

About TELUS

TELUS (TSX:T)(NYSE:TU) is Canada's fastest-growing national telecommunications company, with C$12.8 billion of annual revenue and 12.7 million subscriber connections, including 8.6 million wireless subscribers, 1.7 million high-speed Internet subscribers, 1.4 million residential network access lines and more than 1.0 million TELUS TV customers. TELUS provides a wide range of communications products and services, including wireless, data, Internet protocol (IP), voice, television, entertainment and video, and is Canada's largest healthcare IT provider.

For more information about TELUS, please visit www.telus.com.

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