Telus to redeem early $1.578 billion 7½% notes

By E. Janene Geiss

Philadelphia, Oct. 17 - Canadian telecommunications company Telus Corp. announced Monday that it will redeem its $1.578 billion 7 ½% series CA notes due June 1, 2006 on Dec. 1.

The redemption price will be based on the yield for a Government of Canada bond with the equivalent maturity plus 35 basis points, but not less than par, according to a press release.

The Government of Canada bond yield used for this redemption will be midmarket as quoted by a dealer selected by the company at noon ET on Nov. 28. The noteholders also will receive the regularly scheduled semiannual interest payment on Dec. 1, officials said.

Costs and noncash write-downs for the redemption are expected to result in a $0.06 to $0.07 after-tax charge in the fourth quarter, officials said.

Telus, based in Vancouver, B.C., is the largest telecommunications company in Western Canada and the second largest in the country, with $7.9 billion of annual revenue and 4.1 million wireless customers.

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