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Inter-company debt restructured

 

Vancouver, B.C. – TELUS Corporation (TSX: T and T.A / NYSE: TU) today announced that it has closed its previously announced new five year $2 billion credit facility with a syndicate of 18 financial institutions. This new facility replaces $1.6 billion of existing credit facilities that consisted of an $800 million facility, which would have expired in May 2008 and an $800 million facility, which would have expired in May 2010. The new facility may be used for general corporate purposes including the backstop of commercial paper, which could be part of the refinancing of the $1.5 billion of TELUS notes coming due in June 2007. The new credit facility has no substantial changes in terms and conditions other than reduced pricing and extended term, which reflects favourable market conditions and TELUS' strong financial position. Notably, the May 2012 maturity date of the new credit facility extends beyond the maturity date of TELUS' June 2011 notes.

 

In addition, TELUS Corporation and its subsidiary TELUS Communications Inc. (TCI) today announced that the net senior debt owing from TCI to TELUS Corporation, which stood at approximately $2.6 billion as at December 31, 2006 (incorporating rights of offset), has been increased to approximately $5 billion on a net basis as a result of a restructuring of the inter-company financing arrangements between the two companies. Credit rating agencies generally view these senior inter-company notes as being supportive of TELUS Corporation's ratings. This restructuring does not change the amount of debt of TELUS Corporation on a consolidated basis.

 

This news release contains statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results and events to differ materially from that expressed in the forward-looking statements. Accordingly this news release is subject to the disclaimer and qualified by the assumptions (including assumptions for financings and commercial paper issuance), qualifications and risk factors referred to in the 2006 Management's discussion and analysis.

 

About TELUS
TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications company in Canada, with $8.7 billion of annual revenue and 10.7 million customer connections including 5.1 million wireless subscribers, 4.5 million wireline network access lines and 1.1 million Internet subscribers. TELUS provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Committed to being Canada's premier corporate citizen, over the last six years TELUS has contributed more than $76 million to charitable and non-profit organizations, and has established seven TELUS Community Boards across Canada to lead its local philanthropic initiatives.

 

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For more information, please contact:

Investor relations:
Robert Mitchell
(416) 279-3219
ir@telus.com

 

Media Relations:
Shawn Hall
(604) 697-8176
shawn.hall@telus.com