By Cristal Cody
Tupelo, Miss., Nov. 21 - Telus Corp. sold C$800 million of senior notes (Baa1/BBB+/DBRS: A) in two tranches on Thursday, according to the company and an informed source.
The company priced C$400 million of 3.6% series CM notes due Jan. 26, 2021 at 99.715 to yield 3.645%, or a spread of 140 basis points over the interpolated Government of Canada bond curve. The deal was upsized from a minimum offering of C$350 million.
The seven-year notes are redeemable at the Canada Yield Price plus 35 bps.
Telus also sold C$400 million of 5.15% series CN notes due Nov. 26, 2043 at 99.5 to yield 5.183%, or a spread of 198 bps over the bond curve. The issue was launched with a minimum offering of C$250 million.
The long bonds are redeemable at the Canada Yield Price plus 50 bps and have a par call six months prior to maturity.
CIBC World Markets Inc. and TD Securities Inc. were the bookrunners. Scotia Capital Inc. was a joint lead manager.
The Vancouver, B.C. based telecommunications company plans to use the proceeds to repay about C$290 million of outstanding commercial paper, to provide C$240 million for the acquisition of Canadian mobile carrier Public Mobile Inc. and for general corporate purposes.
| Issuer: | Telus Corp.
|
| Amount: | C$800 million
|
| Securities: | Senior notes
|
| Bookrunners: | CIBC World Markets Inc., TD Securities Inc.
|
| Joint lead manager: | Scotia Capital Inc.
|
| Co-managers: | BMO Nesbitt Burns Inc.; RBC Dominion Securities Inc.; HSBC Securities (Canada) Inc.; National Bank Financial Inc.; Desjardins Securities Inc.; Barclays Capital Canada Inc.; J.P. Morgan Securities Canada Inc.; Canaccord Genuity Corp.; and Laurentian Bank Securities Inc.
|
| Put option: | 101%
|
| Pricing date: | Nov. 21
|
| Settlement date: | Nov. 26
|
| Put option: | 101%
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| DBRS: A
|
| Distribution: | Canada, Rule 144A, Regulation S
|
|
|
| Series CM notes
|
| Amount: | C$400 million
|
| Maturity: | Jan. 26, 2021
|
| Coupon: | 3.6%
|
| Price: | 99.715
|
| Yield: | 3.645%
|
| Spread: | 140 bps over interpolated Government of Canada bond curve
|
| Call feature: | Canada Yield Price plus 35 bps
|
|
|
| Series CN notes
|
| Amount: | C$400 million
|
| Maturity: | Nov. 26, 2043
|
| Coupon: | 5.15%
|
| Price: | 99.5
|
| Yield: | 5.183%
|
| Spread: | 198 bps over interpolated Government of Canada bond curve
|
| Call feature: | Canada Yield Price plus 50 bps; par call six months prior to maturity
|
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