Base shelf prospectus is accessible, and prospectus supplement will be accessible for CAD$ offering within two business days, through SEDAR+
VANCOUVER, BC, Dec. 4, 2025 /PRNewswire/ – TELUS announced today that it has priced an offering of $1.5 billion aggregate principal amount of Fixed‑to‑Fixed Rate Junior Subordinated Notes in two series (together, the “US Notes”).
The $800 million Fixed‑to‑Fixed Rate Junior Subordinated Notes, Series C due June 9, 2056 will initially bear interest at an annual rate of 6.375 % and reset every five years starting on June 9, 2031 to an annual rate equal to the five‑year U.S. Treasury rate plus a spread of 2.694 %, with a floor of 6.375 % for each reset period. The $700 million Fixed‑to‑Fixed Rate Junior Subordinated Notes, Series D due June 9, 2056 will initially bear interest at an annual rate of 6.625 % and reset every five years starting on June 9, 2036 to the five‑year U.S. Treasury rate plus a spread of 2.515 %, with a floor of 6.625 %.
The US Notes are being sold through a syndicate led by CIBC Capital Markets, BMO Capital Markets, TD Securities and Wells Fargo Securities. Closing of the offering is expected on or about December 9, 2025, subject to customary closing conditions.
In a parallel transaction, TELUS priced an offering of $800 million aggregate principal amount of Fixed‑to‑Fixed Rate Junior Subordinated Notes in two series (the “Canadian Notes”).
The $400 million Fixed‑to‑Fixed Rate Junior Subordinated Notes, Series CAT due June 9, 2056 will initially bear interest at an annual rate of 5.375 % and reset every five years starting on June 9, 2031 to the prevailing five‑year Government of Canada rate plus a spread of 2.470 %, with a floor of 5.375 %. The $400 million Fixed‑to‑Fixed Rate Junior Subordinated Notes, Series CAU due June 9, 2056 will initially bear interest at an annual rate of 5.875 % and reset every five years starting on June 9, 2036 to the prevailing five‑year Government of Canada rate plus a spread of 2.555 %, with a floor of 5.875 %.
The Canadian Notes are being offered through a syndicate led by CIBC Capital Markets, BMO Capital Markets and TD Securities. Closing of this offering is also expected on or about December 9, 2025, subject to customary closing conditions.
Strategic implications
The dual‑currency subordinated debt issuance reflects TELUS’s effort to diversify its funding sources while locking in relatively low‑cost capital for the long term. By structuring the notes with a “fixed‑to‑fixed” reset mechanism, TELUS protects itself against a prolonged low‑interest‑rate environment while preserving the upside of rate hikes—an approach that aligns with the company’s sizeable upcoming capital projects in 5G expansion, fiber‑to‑the‑home deployments, and health‑tech platforms.
From a balance‑sheet perspective, the junior subordinated classification provides a cushion for senior debt holders, thereby maintaining a favorable credit profile. The five‑year reset intervals and built‑in rate floors mitigate refinancing risk, ensuring that cash‑flow volatility from interest‑rate swings does not erode operating margins. Moreover, the sizable $500 million tender offer to repurchase higher‑coupon legacy notes will streamline TELUS’s debt mix, reducing weighted‑average cost of capital (WACC) and freeing up covenant capacity for future growth‑oriented borrowings.
In the broader market context, the timing coincides with tightening credit spreads and a modest upward shift in Treasury yields, conditions that make longer‑dated subordinated notes more attractive to institutional investors seeking yield without assuming excessive credit risk. The issuance also underscores the increasing appetite for Canadian‑dollar denominated debt among U.S. investors looking for currency diversification amid ongoing FX volatility.
Proceeds not allocated to the tender offer will be used to retire the outstanding $600 million aggregate principal amount of 3.75 % Notes due March 2026 and to fund general corporate purposes, including continued investment in TELUS Health, agricultural data solutions, and digital transformation initiatives. These strategic allocations are expected to bolster TELUS’s competitive positioning in the converged communications‑technology landscape, where data‑intensive services and AI‑driven customer experiences are becoming differentiators.
The US Notes will be described in a prospectus supplement filed with the SEC as part of TELUS’s short‑form base shelf prospectus dated December 4, 2025. The US Notes are not being offered in Canada except through transactions exempt from Canadian prospectus requirements.
The Canadian Notes will be described in a prospectus supplement filed with securities regulators in each Canadian province. The Canadian Notes are not being offered in the United States.
This release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The securities have not been approved or disapproved by any securities regulatory authority in Canada or the United States, nor has any authority passed upon the accuracy or adequacy of the base shelf prospectus or the prospectus supplement.
Forward‑Looking Statements
This release contains forward‑looking statements regarding the offerings, the tender offer, anticipated closing dates, and the intended use of net proceeds. Such statements are subject to risks and uncertainties, including market volatility, interest‑rate fluctuations, and the achievement of anticipated financing and operational milestones. Actual results may differ materially from those expressed or implied in these statements. TELUS does not intend to update these forward‑looking statements, except as required by law.
About TELUS
TELUS (TSX: T, NYSE: TU) is a global communications‑technology company operating in more than 45 countries, generating over $20 billion in annual revenue and serving more than 20 million customer connections. The company’s portfolio spans broadband services, health‑technology platforms, agricultural data solutions, and digital transformation services for enterprises and public‑sector clients. TELUS’s “give where we live” philosophy drives significant community investment, having contributed $1.8 billion in cash, in‑kind contributions, and volunteer hours since 2000.
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