Benzinga | Mar 30, 2021 07:24AM EDT

TELUS Seeks To Raise $500M Via Private Unsecured Debt Offering For Debt Refinancing

* TELUS Corp (NYSE: TU) proposed to raise $500 million from the sale of senior unsecured Series CAE notes with a 30-year maturity in a private secondary offering.

* CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets, and Scotiabank led the offering.

* The 4.10% 30-year Series CAE notes were priced at $99.47 per $100 for an effective yield of 4.131% per annum.

* The offering proceeds will be used to repay Series 3, 10.65% debentures of TELUS subsidiary TELUS Communications Inc due June 2021, commercial paper incurred for general working capital purposes, and general corporate purposes.

* TELUS recently raised C$1.3 billion in a private secondary share sale to consolidate its balance sheet and fast-track its broadband capital investment program.

* The company held cash and cash equivalents of $152.5 million as of Dec. 31, 2020. The long-term debt balance was $1.7 billion.

* Price action: TU shares closed lower by 0.79% at $20.01.