TELUS Corporation (TSX: T; NYSE: TU) and its subsidiary, TELUS
International (Cda) Inc. (TELUS International), today announced the
pricing of the upsized TELUS International initial public offering
(IPO) of 37.0 million subordinate voting shares at a price of
US$25.00 per share.
The offering is expected to generate aggregate gross proceeds to
TELUS International, TELUS Corporation (TELUS) and Baring Private
Equity Asia (Baring) of U.S. $925 million (CAD$1.18 billion) (or
U.S. $1.06 billion (CAD$1.36 billion), if the underwriters exercise
their over-allotment option in full), with expected net proceeds to
TELUS International of approximately US$490 million (CAD$627
million), which are expected to be used to repay outstanding
borrowings under its revolving credit facilities. TELUS
International will not receive any proceeds from the subordinate
voting shares sold by the selling shareholders.
The subordinate voting shares are expected to begin trading on
the New York Stock Exchange and the Toronto Stock Exchange under
the ticker symbol “TIXT” on February 3, 2021. The offering is
expected to close on February 5, 2021, subject to customary closing
conditions.
The subordinate voting shares offered in the IPO include
approximately 21.0 million from TELUS International treasury and
approximately 16.0 million from TELUS and Baring, the selling
shareholders. The selling shareholders have granted the
underwriters a 30-day option to purchase up to 5.55 million
additional subordinate voting shares at the IPO price, less
underwriting discounts and commissions (the over-allotment
option).
Following the offering, TELUS is expected to hold approximately
67.8% of the voting power of TELUS International (67.0% if the
underwriters’ over-allotment option is exercised in full) and 57.1%
of the economic interest (55.2% if the underwriters’ over-allotment
option is exercised in full). Baring is expected to hold
approximately 30.1% of the voting power of TELUS International
(30.7% if the underwriters’ over-allotment option is exercised in
full) and 25.4% of the economic interest (25.3% if the
underwriters’ over-allotment option is exercised in full).
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are
acting as joint lead book-running managers for the IPO. Barclays
Capital Inc., BofA Securities, Inc. and CIBC World Markets Inc. are
also acting as active book-running managers. Citigroup Global
Markets Inc., Credit Suisse Securities (USA) LLC, RBC Dominion
Securities Inc., Robert W. Baird & Co. Incorporated, BMO
Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc., Wells
Fargo Securities, and William Blair & Company, L.L.C. are also
acting as book-running managers. Additionally, MUFG Securities
Americas Inc., National Bank Financial Inc., Loop Capital Markets
LLC and R. Seelaus & Co., LLC are acting as co-managers.
A registration statement relating to the IPO was filed with, and
declared effective by, the U.S. Securities and Exchange Commission.
TELUS International has also obtained a receipt for its final base
PREP prospectus filed with the securities regulatory authorities in
each of the provinces and territories of Canada. The IPO is being
made only by means of a prospectus. A copy of the prospectus
related to the offering may be obtained from: J.P. Morgan
Securities LLC, c/o Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204,
or by email at prospectus-eq_fi@jpmchase.com; Morgan Stanley
& Co. LLC, Attention: Prospectus Department, 180 Varick Street,
2nd Floor, New York, NY 10014; Barclays, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717,
by calling (888) 603-5847, or by email
at barclaysprospectus@broadridge.com; BofA Securities,
NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC
28255-0001, Attn: Prospectus Department, or by email
at dg.prospectus_requests@bofa.com; or CIBC Capital Markets,
22 Front Street West, Mailroom, Toronto, ON, M5J 2W5, by telephone
at (416) 956-3636, or by email
at michelene.dougherty@cibc.ca.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any securities of TELUS
International, and shall not constitute an offer, solicitation or
sale in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of that jurisdiction.
About TELUS InternationalTELUS International
designs, builds and delivers next-generation digital solutions to
enhance the customer experience (CX) for global and disruptive
brands. The company’s services support the full lifecycle of its
clients’ digital transformation journeys and enable them to more
quickly embrace next-generation digital technologies to deliver
better business outcomes. TELUS International’s integrated
solutions and capabilities span digital strategy, innovation,
consulting and design, digital transformation and IT lifecycle
solutions, data annotation and intelligent automation, and
omnichannel CX solutions that include content moderation, trust and
safety solutions and other managed solutions. Fueling all stages of
company growth, TELUS International partners with brands across
high growth industry verticals, including tech and games,
communications and media, eCommerce and fintech, healthcare, and
travel and hospitality. Learn more at: telusinternational.com.
About TELUS CorporationTELUS (TSX: T, NYSE: TU)
is a dynamic, world-leading communications technology company
spanning wireless, data, IP, voice, television, entertainment,
video, and security. We leverage our global-leading technology and
compassion to enable remarkable human outcomes. Our longstanding
commitment to putting our customers first fuels every aspect of our
business, making us a distinct leader in customer service
excellence and loyalty. In 2020, TELUS was recognized as having the
fastest wireless network in the world, reinforcing our commitment
to provide Canadians with access to superior technology that
connects us to the people, resources and information that make our
lives better. TELUS Health is Canada’s leader in digital health
technology, improving access to health and wellness services and
revolutionizing the flow of health information across the continuum
of care. TELUS Agriculture provides innovative digital solutions
throughout the agriculture value chain, supporting better food
outcomes from improved agri-business data insights and processes.
TELUS International is a leading digital customer experience
innovator that delivers next-generation AI and content management
solutions for global brands across the technology and games,
ecommerce and FinTech, communications and media, healthcare, travel
and hospitality sectors. TELUS and TELUS International operate
in 25+ countries around the world.
Driven by our passionate social purpose to connect all citizens
for good, our deeply meaningful and enduring philosophy to give
where we live has inspired TELUS, our team members and retirees to
contribute more than $820 million and 1.6 million days of service
since 2000. This unprecedented generosity and unparalleled
volunteerism have made TELUS the most giving company in the
world.
For more information about TELUS, please visit telus.com, follow
us @TELUSNews on Twitter and @Darren_Entwistle on Instagram.
TELUS Investor Relations |
TELUS International Investor Relations |
Ian McMillan |
Jason Mayr |
(604) 695-4539 |
604-695-3455 |
ir@telus.com |
ir@telusinternational.com |
|
|
TELUS Media Relations |
TELUS International Media Relations |
Steve Beisswanger |
Ali Wilson |
(514) 865-2787 |
(604) 328-7093 |
iSteve.Beisswanger@telus.com |
Ali.Wilson@telusinternational.com |
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