Canada’s third largest mobile operator Telus is issuing two series of senior unsecured notes totalling C$1bn (US$907m) to cover the cost of its recently-acquired 700 MHz spectrum.
It is offering C$500m of 3.20% seven-year notes that priced at 99.74 to…
Canada’s third largest mobile operator Telus is issuing two series of senior unsecured notes totalling C$1bn (US$907m) to cover the cost of its recently-acquired 700 MHz spectrum.
It is offering C$500m of 3.20% seven-year notes that priced at 99.74 to yield 3.24%, and C$500m of 4.85% 30-year notes that priced at 99.87 to yield 4.86%.
The notes are being offered through a syndicate of agents led by TD Securities, RBC Capital Markets, and Scotia Capital.
The proceeds will be used to finance the bulk of the C$1.14bn Telus paid for 16 paired blocks and 14 unpaired blocks of 700 MHz spectrum, which it won in Canada’s digital dividend auction in February.
Commenting on the offering, outgoing CEO Darren Entwistle said: “Upon closing of today’s debt offering, the average term to maturity of Telus’ long-term debt will be 10.3 years, compared to 5.5 years at the end of 2012.
“Moreover, Telus’ weighted average cost of long-term debt will be 4.89%, as compared to 5.44% at the end of 2012.”
The bond issue is the Vancouver-based telco’s first since it raised C$800m in November to fund its acquisition of minnow Public Mobile. Last week it said it will close down Public’s network and transfer its subscribers to its larger network by the end of August.
On Monday it was announced that Entwistle would relinquish the CEO role and take on a newly-created role as executive chair. He will be succeeded by the mobile operator’s chief commercial officer, Joe Natale, who will become president and CEO.
Both appointments will become effective after the company’s AGM on 8 May, providing shareholders support the leadership changes.
