TELUS announces pricing of US$ and CAD$ junior subordinated notes offerings

Rhea-AI Summary

TELUS (NYSE:TU) priced senior subordinated note offerings on December 5, 2025 totaling US$1.5 billion (two US series) and CAD$800 million (two Canadian series), each due June 9, 2056 with initial fixed coupons and five‑year reset features.

Key terms: US Series C US$800M at 6.375% (floor 6.375%) and Series D US$700M at 6.625% (floor 6.625%); Canadian Series CAT CAD$400M at 5.375% (floor 5.375%) and Series CAU CAD$400M at 5.875% (floor 5.875%). Closings expected on or about Dec 9, 2025.

Net proceeds will fund a tender offer up to $500 million, repay outstanding indebtedness including redemption of $600 million Series CV due March 2026, and general corporate purposes.

Positive

• US notes priced at US$1.5 billion
• Canadian notes priced at CAD$800 million
• Tender offer funded up to $500 million
• Proceeds earmarked to redeem $600 million Series CV

Negative

• Aggregate new principal of US$1.5B + CAD$800M
• US notes carry reset floors at 6.375% and 6.625%
• Canadian notes carry reset floors at 5.375% and 5.875%

Key Figures

US notes size US$1.5 billion Aggregate principal amount of US Fixed-to-Fixed Rate Junior Subordinated Notes

US Series C size US$800 million Fixed-to-Fixed Rate Junior Subordinated Notes, Series C due June 9, 2056

US Series D size US$700 million Fixed-to-Fixed Rate Junior Subordinated Notes, Series D due June 9, 2056

Canadian notes size CAD$800 million Aggregate principal amount of Canadian Fixed-to-Fixed Rate Junior Subordinated Notes

Tender offer maximum $500 million Maximum Purchase Amount for outstanding long-dated TELUS notes in tender offer

Notes redemption $600 million Redemption of 3.75% Notes, Series CV due March 2026

Series C coupon 6.375% Initial annual interest rate on US Series C notes, floor for reset periods

Series D coupon 6.625% Initial annual interest rate on US Series D notes, floor for reset periods

Market Reality Check

$13.36 Last Close

Volume Volume 7,322,144 is slightly below 20-day average 7,771,404 (relative volume 0.94) ahead of this offering news. normal

Technical Shares trade below the 200-day MA 15.45, with price at 13.36, about 20.17% under the 52-week high 16.735 and 4.37% above the 52-week low 12.8.

Peers on Argus

TU was up 0.6% pre-news while peers showed mixed moves: BCE +0.09%, SATS +1.56%, RCI -1.08%, VIV flat, CHTR +0.14%. This suggests a stock-specific financing event rather than a broad telecom sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Capital allocation update	Positive	+1.6%	New multi-year free cash flow targets and dividend plan changes.
Nov 07	Dividend declaration	Positive	+1.3%	Board declared quarterly cash dividend of $0.4184 per share.
Nov 07	Earnings results	Positive	+1.3%	Strong Q3 results with higher net income and free cash flow, dividend raised.
Nov 04	AI platform expansion	Positive	-0.3%	Expansion of Fuel iX AI platform to 70,000 employees with multiple tools.
Oct 31	Acquisition/privatization	Neutral	-0.5%	Completed privatization of TELUS Digital for ~US$539M and 100% ownership.

Pattern Detected

Recent news tied to capital allocation, dividends, and earnings has generally seen positive price alignment, while technology/strategic updates and M&A have produced mild negative or mixed reactions.

Recent Company History

Over the last few months, TELUS has focused on capital allocation discipline and growth. On Oct 31, 2025 it completed the privatization of TELUS Digital for about US$539M. In early November, it reported strong Q3 2025 results with net income of C$431M (+68%) and raised its dividend to $0.4184. A cash dividend was declared on Nov 6, 2025. On Dec 3, 2025 TELUS outlined free cash flow targets and leverage reduction plans. Today’s hybrid notes offerings and related tender offer fit into this ongoing balance-sheet and capital structure optimization trajectory.

Market Pulse Summary

This announcement details sizeable hybrid note offerings—US$1.5 billion and CAD$800 million—with proceeds directed to a tender offer of up to $500 million of long-dated notes and redemption of $600 million of 2026 notes. It continues TELUS’s recent focus on leverage targets and free cash flow outlined on Dec 3, 2025. Investors may track execution of the tender offer, costs of the new notes, and how these actions support the company’s stated leverage reduction objectives.

Key Terms

junior subordinated notes financial

"TELUS announced today it has priced an offering of US$1.5 billion aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes in two series"

Junior subordinated notes are a type of bond: a loan investors make to a company that ranks low in the repayment order if the company runs into trouble. Because they are paid after other creditors, they usually offer higher interest to compensate for greater risk; think of them as being near the back of the line at a crowded payout window. Investors care because these notes affect potential returns and downside exposure, and they influence a company’s overall borrowing risk and credit profile.

tender offer financial

"used to fund the tender offer, which commenced on December 4, 2025, to purchase for cash up to $500 million"

A tender offer is a proposal made by a person or company to buy shares from existing shareholders at a set price, usually higher than the current market value, within a specific time frame. It matters to investors because it can lead to a change in ownership or control of a company, and shareholders must decide whether to sell their shares at the offered price.

prospectus supplement regulatory

"prospectus supplement that TELUS will be filing to its short form base shelf prospectus dated December 4, 2025"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

EDGAR regulatory

"available electronically, as applicable, on the Electronic Data Gathering, Analysis, and Retrieval system, administered by the US Securities and Exchange Commission ("EDGAR")"

EDGAR is a system used by companies to share important financial and business information with the public. It functions like an online filing cabinet where investors can access official reports and documents that help them understand a company's financial health and operations. This transparency allows investors to make more informed decisions, much like checking a company's report card before investing.

AI-generated analysis. Not financial advice.

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 it has priced an offering of US$1.5 billion aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes in two series (together, the "US Notes"). 

The US$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 at an annual rate equal to the Five-Year U.S. Treasury rate plus a spread of 2.694%, provided that the interest rate during any five-year interest period will not reset below 6.375%. The US$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 at an annual rate equal to the Five-Year U.S. Treasury rate plus a spread of 2.515%, provided that the interest rate during any five-year interest period will not reset below 6.625%.

The US Notes are offered through a syndicate of underwriters led by CIBC Capital Markets, BMO Capital Markets, TD Securities and Wells Fargo Securities. Closing of the offering is expected to occur on or about December 9, 2025, subject to the satisfaction of customary closing conditions.

TELUS also announced today it has priced an offering of CAD$800 million aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes in two series (together, the "Canadian Notes"). 

The CAD$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 an annual rate equal to the prevailing five-year Government of Canada rate plus a spread of 2.470%, provided that the interest rate during any five-year interest period will not reset below 5.375%. The CAD$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 an annual rate equal to the prevailing five-year Government of Canada rate plus a spread of 2.555%, provided that the interest rate during any five-year interest period will not reset below 5.875%.

The Canadian Notes are offered through a syndicate of agents led by CIBC Capital Markets, BMO Capital Markets and TD Securities. Closing of the offering is expected to occur on or about December 9, 2025, subject to the satisfaction of customary closing conditions.

A portion of the net proceeds of the US Notes and Canadian Notes offerings will be used to fund the tender offer, which commenced on December 4, 2025, to purchase for cash up to $500 million (the "Maximum Purchase Amount") of TELUS' outstanding 3.95% Notes, Series CAB due February, 2050, 4.10% Notes, Series CAE due April, 2051, 4.40% Notes, Series CU due January, 2046, 4.40% Notes, Series CL due April, 2043, 4.70% Notes, Series CW due March, 2048, 2.85% Notes, Series CAF due November, 2031 and 4.75% Notes, Series CR due January, 2045 (the "Tender Offer"). TELUS has the right to increase, decrease or waive the Maximum Purchase Amount, in its sole discretion. TELUS intends to use the remaining net proceeds from the offerings not applied to the Tender Offer for the repayment of outstanding indebtedness, including the redemption of all of the $600 million aggregate principal amount outstanding on TELUS' 3.75% Notes, Series CV due March, 2026 and for other general corporate purposes.

The US Notes will be further described in the prospectus supplement that TELUS will be filing to its short form base shelf prospectus dated December 4, 2025 with the Securities and Exchange Commission as part of an effective shelf registration statement on Form F-10. The US Notes are not being offered in Canada or to any resident of Canada except in transactions exempt from the prospectus requirements of applicable Canadian securities laws.

The Canadian Notes will be further described in the prospectus supplement that TELUS will be filing to its short form base shelf prospectus dated December 4, 2025 with securities regulatory authorities in each of the provinces of Canada. The Canadian Notes are not being offered in the United States or to any resident of the United States.

This news 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 securities regulatory authority in Canada or the United States, nor has any authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement.

Copies of the short form base shelf prospectus and the prospectus supplements relating to the offering of the US Notes and Canadian Notes when filed with securities regulatory authorities in the United States and Canada, respectively, may be obtained from the Chief Legal and Governance Officer of TELUS at 510 W. Georgia St., 23rd Floor, Vancouver, British Columbia V6B 0M3 (telephone 604-695-6420). Copies of these documents are, or will be, available electronically, as applicable, on the Electronic Data Gathering, Analysis, and Retrieval system, administered by the US Securities and Exchange Commission ("EDGAR") at www.sec.gov, and on the System for Electronic Data Analysis and Retrieval+ of the Canadian Securities Administrators ("SEDAR+"), at www.sedarplus.ca. Investors should read the short form base shelf prospectus and prospectus supplements before making an investment decision. Access to the prospectus supplement and the base shelf prospectus, and any amendments thereto, is provided in accordance with securities legislation relating to the procedures for providing access to such documents. 

Forward-Looking Statements

This news release contains statements about future events pertaining to the offerings and the Tender Offer, including the anticipated closing date of the offerings and the intended use of the net proceeds of the offerings. By their nature, forward-looking statements require us to make assumptions and predictions and are subject to inherent risks and uncertainties including risks associated with capital and debt markets. The timing and closing of the above-mentioned offerings and the Tender Offer are subject to customary closing conditions and other risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from those described in the forward-looking statements. Accordingly, this news release is subject to the disclaimer and the qualifications and risk factors as set out in our 2024 annual management's discussion and analysis ("MD&A"), and updated in our third quarter 2025 MD&A, and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR+ at sedarplus.ca) and in the United States (on EDGAR at sec.gov). The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements.

About TELUS

TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company operating in more than 45 countries and generating over C$20 billion in annual revenue with more than 20 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. TELUS Health is enhancing more than 160 million lives across 200 countries and territories through innovative preventive medicine and well-being technologies. TELUS Agriculture & Consumer Goods utilizes digital technologies and data insights to optimize the connection between producers and consumers. TELUS Digital specializes in digital customer experiences and future-focused digital transformations that deliver value for their global clients. Guided by our enduring 'give where we live' philosophy, TELUS, our team members and retirees have contributed C$1.8 billion in cash, in-kind contributions, time and programs including 2.4 million days of service since 2000, earning us the distinction of the world's most giving company.

Investor Relations
Robert Mitchell
ir@telus.com 

Media Relations
Steve Beisswanger
Steve.Beisswanger@telus.com 

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SOURCE TELUS Corporation

FAQ

What did TELUS (TU) price on December 5, 2025?

TELUS priced US$1.5 billion in US junior subordinated notes and CAD$800 million in Canadian junior subordinated notes.

When do the new TELUS (TU) notes mature and reset?

All series mature on June 9, 2056 with five‑year interest rate resets starting in 2031 or 2036.

What initial coupons did TELUS set for the US notes (TU)?

US Series C: 6.375%; US Series D: 6.625% initial annual interest rates.

How will TELUS (TU) use the net proceeds from these offerings?

Proceeds will fund a tender offer up to $500 million, repay debt including $600 million Series CV, and general corporate purposes.

When is the expected closing date for TELUS (TU) offerings?

Closings are expected on or about December 9, 2025, subject to customary closing conditions.

Who are the lead underwriters for TELUS (TU) note offerings?

US notes led by CIBC Capital Markets, BMO Capital Markets, TD Securities, Wells Fargo Securities; Canadian notes led by CIBC, BMO and TD.