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Telus may raise $957m in bond sale
02 December 2009
Canadian operator Telus is to raise funds through a debt sale, using the proceeds to redeem part of existing loans
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[Telus]
[Canada]
[bond]
[Scotia Capital]
[CIBC]
[Rogers]
[Shaw]
Comment: Since Bell Canada failed to privatise itself a year ago, one might have expected financial institutions to be wary of other Canadian operators. Telus, Rogers and its rivals show that supposition to be wrong.
Canadian operator Telus may raise $957 million in a note sale. The notes, maturing in 10 years, will offer a coupon rate of 5.05%. The bonds were priced at 182 basis points, to yield 5.125%. The company had targeted a minimum of $478.6 million in the offering, which is expected to close on December 4 2009.
The Vancouver-based company — whose CFO is Robert McFarlane — will use the proceeds to fund the partial redemption of $583.5 million principal amount of its outstanding $1.945 billion, 8% notes, which are due on June 1 2011.
A syndicate of agents led by Scotia Capital and CIBC World Markets will manage the sale.
Two rivals of Telus, Rogers Communications and Shaw Communications, have already raised funds by offering 10-year bonds. Telus aims to reduce its capital-intensity ratio to nearly 15% by 2012 from an expected 17% in 2010. GTB
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