Canadian operator Telus has priced a dual-tranche C$1.7bn (US$1.67bn) senior unsecured bond.
The first slice is for C$1.1bn (US$1.08bn) and matures in 2024. The notes carry a coupon of 3.35%, priced at 99.435 and have an effective annual yield of…
Canadian operator Telus has priced a dual-tranche C$1.7bn (US$1.67bn) senior unsecured bond.
The first slice is for C$1.1bn (US$1.08bn) and matures in 2024. The notes carry a coupon of 3.35%, priced at 99.435 and have an effective annual yield of 3.412%, a spread of +142 basis points above the interpolated Government of Canada curve.
The second tranche is for C$600m (US$590m). These 30-year notes have a fixed-rate of 4.4%, priced at 99.768 to yield 4.414%, 187 basis points over the Canadian government’s benchmark.
CIBC World Markets, RBC Capital Markets, and Scotia Capital are lead bookrunners on the offering, while BMO Nesbitt Burns, TD Securities, HSBC, Morgan Stanley, National Bank Financial, Barclays, Desjardins Securities, JP Morgan, Canaccord Financial and Laurentian Bank Securities were also part of the syndicate.
Net proceeds will be put towards repaying Telus’ outstanding C$300m (US$295m) of 5% notes maturing in early June.
Takings from the offering will also be used to fund the early redemption of its outstanding C$700m (US$689m) of 4.95% notes due May 2014. The remaining proceeds will repay outstanding short term floating rate debt or be used for general corporate purposes.
Telus’ last outing to the debt markets was in December when it issued 3.35% senior unsecured notes due 2023, to refinance outstanding commercial paper.
It operates quadruple play services and generated C$10.9bn (US$10.7bn) of annual revenue last year, C$4bn (US$3.9bn) EBITDA and recorded net debt of C$6.6bn (US$6.5bn), giving it a net debt to EBITDA ratio of 1.6%.