TELUS announces C$1.3 billion equity offering

Proceeds to be used to strategically bring forward transformational capital investments in broadband connectivity, including fibre and 5G, enhancing our industry-best customer experience, leading networks and competitive position

Accelerated investments to drive significant cash flow benefits from a reduction in capital expenditures commencing in 2023, combined with enhanced revenue and EBITDA growth

VANCOUVER, British Columbia, March 25, 2021 (GLOBE NEWSWIRE) -- TELUS Corporation (“TELUS”, the “Company” or “we”) (TSX-T, NYSE-TU) announced today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and CIBC Capital Markets, and together with BMO Capital Markets, Scotiabank and TD Securities Inc. as joint book runners (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase from TELUS, on a bought deal basis, and sell to the public, 51,300,000 common shares of TELUS (the “Common Shares”) at a price of C$25.35 per Common Share (the “Offering Price”) for gross proceeds of approximately C$1.3 billion (the “Offering”).

TELUS has granted the Underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 7,695,000 Common Shares at the Offering Price. If the over-allotment option is exercised in full, the gross offering size would increase to approximately C$1.5 billion.

TELUS intends to use the net proceeds from this Offering to further strengthen the Company’s balance sheet and, principally, to capitalize on a unique strategic opportunity to accelerate its broadband capital investment program, including the substantial advancement of the build-out of TELUS PureFibre infrastructure in Alberta, British Columbia and Eastern Quebec, as well as an accelerated roll-out of the Company’s national 5G network.

The Company anticipates that approximately C$500 to C$750 million of the accelerated capital investments will be earmarked for 2021, over and above its previous target of C$2.75 billion, dependent upon its ability to ramp up resources and suppliers. The balance of approximately C$750 million to C$1 billion is expected to be brought forward into 2022, in addition to TELUS’ planned annual capital expenditures of C$2.75 billion for next year. Investing from a position of strength and leadership, this accelerated broadband expansion program will significantly enhance TELUS’ fibre buildout across key markets in British Columbia, Alberta and Eastern Quebec, as well as advance investments related to the expansion of our 5G footprint, including network readiness for 5G spectrum and system upgrades.