TELUS Corporation has opened a cash tender offer that will allow holders of seven outstanding debt series to sell their notes for cash, with the company willing to purchase up to C$500 million in total principal. The offer includes the 3.95 % CAB due February 2050 and the 4.70 % CL due April 2043, among other series, and will close on December 11 2025 with settlement scheduled for December 16 2025. The company retains discretion to adjust the maximum purchase amount and the allocation among the series, and the tender is subject to the satisfaction of financing conditions.
The decision to target these particular debt series reflects TELUS’s ongoing strategy to optimize its capital structure. The notes selected carry coupon rates that are higher than the company’s current weighted average cost of long‑term debt, which stood at 4.37 % as of the end of 2024. By repurchasing the higher‑coupon debt, TELUS can lower its overall interest expense and extend the maturity profile of its debt portfolio, thereby improving financial flexibility and supporting future growth initiatives.
TELUS has a history of using cash tender offers to manage its debt. In June 2025 the company launched a similar offer for eight series, initially up to C$600 million and later upsized to approximately C$1.375 billion after receiving substantial tendered amounts. That offer was financed through a US$1.5 billion junior subordinated notes issuance, demonstrating TELUS’s willingness to tap capital markets to fund debt‑repurchase programs. The current offer follows the same pattern, with financing conditions tied to the successful raising of new debt proceeds.
Beyond the immediate cost savings, the tender offers fit into TELUS’s broader deleveraging plan. The company has set a target to bring its net debt‑to‑EBITDA ratio down to roughly three times by the end of 2027. In addition, TELUS announced on December 3 2025 that it would pause dividend growth and scale back its dividend reinvestment program to preserve capital, underscoring a focus on strengthening the balance sheet. The cash tender offers are a concrete step toward that goal, reducing leverage and freeing cash for strategic investments and shareholder returns.
Overall, the tender offers signal TELUS’s continued commitment to prudent capital management. By reducing interest costs, extending maturities, and tightening leverage, the company positions itself to weather market volatility while maintaining the capacity to invest in growth opportunities. The move is consistent with TELUS’s historical debt‑management practices and aligns with its stated objective of maintaining a robust financial foundation for the long term.
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