TELUS Prices $1.5 Billion Junior Subordinated Notes Offering with Rates Up to 6.625%
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 32 minutes ago0mins
- Bond Offering Scale: TELUS announced a $1.5 billion offering of fixed-rate junior subordinated notes, including $800 million Series C notes at 6.375% and $700 million Series D notes at 6.625%, which will provide substantial funding for future financial needs.
- Clear Use of Proceeds: A portion of the net proceeds from this bond issuance will be used to repurchase up to $500 million of existing debt, aimed at reducing financial costs and optimizing capital structure, thereby enhancing the company's financial flexibility and stability.
- Positive Market Response: The bond offering is being underwritten by major firms including CIBC, BMO, and TD Securities, with an expected closing date of December 9, 2025, indicating strong market confidence in TELUS's debt instruments, which may help bolster the company's reputation in capital markets.
- Long-term Interest Rate Risk Management: The new bonds will reset interest rates every five years, ensuring that TELUS's financing costs do not fall below set minimum rates in a rising interest rate environment, effectively managing long-term interest rate risks and safeguarding the company's financial health.
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Analyst Views on TU
Wall Street analysts forecast TU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TU is 15.39 USD with a low forecast of 13.52 USD and a high forecast of 18.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
3 Hold
2 Sell
Hold
Current: 13.280
Low
13.52
Averages
15.39
High
18.50
Current: 13.280
Low
13.52
Averages
15.39
High
18.50
National Bank
Sector Perform -> Outperform
upgrade
$21
2025-11-18
Reason
National Bank
Price Target
$21
2025-11-18
upgrade
Sector Perform -> Outperform
Reason
National Bank upgraded Telus to Outperform from Sector Perform with a C$21 price target.
JPMorgan
Neutral -> Underweight
downgrade
$22 -> $19
2025-11-18
Reason
JPMorgan
Price Target
$22 -> $19
2025-11-18
downgrade
Neutral -> Underweight
Reason
JPMorgan downgraded Telus to Underweight from Neutral with a price target of C$19, down from C$22. The company's dividend growth looks unsustainable, the analyst tells investors in a research note. The firm cites capital allocation questions and Telus' elevated payout ratio for the downgrade.
Veritas
Reduce -> Sell
downgrade
$19
2025-11-11
Reason
Veritas
Price Target
$19
2025-11-11
downgrade
Reduce -> Sell
Reason
Veritas downgraded Telus to Sell from Reduce with a C$19 price target.
Barclays
Equal Weight
downgrade
$15 -> $14
2025-11-10
Reason
Barclays
Price Target
$15 -> $14
2025-11-10
downgrade
Equal Weight
Reason
Barclays lowered the firm's price target on Telus to $14 from $15 and keeps an Equal Weight rating on the shares following the Q3 report.
See All Ratings
About TU
TELUS Corporation is a communications technology company serving customers through its suite of broadband services for consumers, businesses and the public sector. Its segments include TELUS technology solutions, TELUS digital experience and TELUS health. The TELUS technology solutions segment includes mobile technologies; data (which include Internet protocol; television; and home and business security and automation); agriculture and consumer goods services (software, data management and data analytics-driven smart-food chain and consumer goods technologies); voice and other telecommunications services, and equipment sales. The TELUS health segment includes healthcare services, software and technology solutions (including employee and family assistance programs and benefits administration). The TELUS digital experience segment includes service lines provided by its TELUS International (Cda) Inc. subsidiary: artificial intelligence and data solutions, and trust, safety and security.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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