TELUS Corporation completed the full redemption of its outstanding C$600 million 3.75 % notes, Series CV, due March 10 2026, on January 16 2026. The company used proceeds from a C$2.9 billion hybrid notes issuance that closed in December 2025 to fund the repayment, marking the third major debt‑repayment step in its current deleveraging program.
The redemption cuts TELUS’s long‑term debt by C$600 million and improves its net debt‑to‑adjusted EBITDA ratio from an estimated 3.4× in 2025 to a projected 3.1× for the year, moving the company closer to its 3.0× target by the end of 2027. The move also reduces the company’s interest‑bearing debt profile, although the hybrid notes carry a higher coupon than the redeemed notes, which will increase long‑term interest expense in the coming years.
This transaction is part of a broader balance‑sheet optimization strategy that included the early redemption of seven discounted note series totaling C$1.0 billion earlier this year. Management emphasized that the program is designed to preserve financial flexibility for strategic initiatives, including AI expansion, while acknowledging that the dividend growth program has been paused to prioritize deleveraging. "The successful redemption demonstrates our disciplined approach to balance‑sheet management and our commitment to strengthening our financial foundation," said CFO Doug French.
The swap of lower‑cost debt for higher‑cost hybrid notes has a trade‑off: while the company reduces principal, it accepts a higher interest burden. Market analysts noted a mild negative reaction on the day of the completion, citing the immediate cash outflow and the potential for increased long‑term interest expense as key concerns. The move, however, is expected to improve TELUS’s credit profile and support future capital allocation decisions.
Overall, the redemption frees cash that can be directed toward AI and other growth initiatives, while the company’s focus on deleveraging signals a cautious stance on dividend increases. The transaction positions TELUS to meet its 2027 leverage target and maintain a stronger balance sheet in a competitive telecommunications environment.
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