Telus Corp 6-K, filed Apr 22, 2025
Telus Corp (TU)
About this 6-K
Telus Corp filed this 6-K on April 22, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of April 2025
Commission File Number 001-15144
TELUS CORPORATION
(Translation of registrant's name into English)
23rd Floor, 510 West Georgia Street
Vancouver, British Columbia V6B 0M3
Canada
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | ¨ | Form 40-F | x |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TELUS CORPORATION | |||
| By: | /s/ Andrea Wood | ||
| Name: | Andrea Wood | ||
| Title: | Executive Vice President and Chief Legal and Governance Officer | ||
Date: April 22, 2025
Exhibit Index
Exhibit 99.1
Execution Version
TELUS CORPORATION
DEBT SECURITIES
Agency Agreement
April 15, 2025
To the Agents named in Schedule II hereto
Ladies and Gentlemen:
TELUS Corporation, a British Columbia company (the “Company”), proposes to appoint the agents named in Schedule II hereto (collectively, the “Agents”, and each individually an “Agent”) as its sole and exclusive agents to offer for sale, on a best efforts basis, up to the principal amount of its debt securities identified in Schedule I hereto (the “Securities”), to be issued under the indenture dated as of May 22, 2001 (the “Base Indenture”) between the Company and Computershare Trust Company of Canada (formerly Montreal Trust Company of Canada), as trustee (the “Trustee”), as supplemented by the First Series Supplemental Indenture dated as of May 30, 2001, the Second Series Supplemental Indenture dated as of May 30, 2001, the Third Series Supplemental Indenture dated as of May 30, 2001, the Fourth Series Supplemental Indenture dated as of May 18, 2006, the Fifth Series Supplemental Indenture dated as of March 13, 2007, the Sixth Series Supplemental Indenture dated as of March 13, 2007, the Seventh Series Supplemental Indenture dated as of April 9, 2008, the Eighth Series Supplemental Indenture dated as of May 20, 2009, the Ninth Series Supplemental Indenture dated as of December 4, 2009, the Tenth Series Supplemental Indenture dated as of July 23, 2010, the Eleventh Series Supplemental Indenture dated as of May 25, 2011, the Twelfth Series Supplemental Indenture dated as of December 11, 2012, the Thirteenth Series Supplemental Indenture dated as of April 1, 2013, the Fourteenth Series Supplemental Indenture dated as of April 1, 2013, the Fifteenth Series Supplemental Indenture dated as of November 26, 2013, the Sixteenth Series Supplemental Indenture dated as of November 26, 2013, the Seventeenth Series Supplemental Indenture dated as of April 4, 2014, the Eighteenth Series Supplemental Indenture dated as of April 4, 2014, the Nineteenth Series Supplemental Indenture dated as of September 15, 2014, the Twentieth Series Supplemental Indenture dated as of September 15, 2014, the Twenty-First Series Supplemental Indenture dated as of March 27, 2015, the Twenty-Second Series Supplemental Indenture dated as of March 27, 2015, the Twenty-Third Series Supplemental Indenture dated as of March 27, 2015, the Twenty-Fourth Series Supplemental Indenture dated as of December 8, 2015, the Twenty-Fifth Series Supplemental Indenture dated as of December 8, 2015, the Twenty-Sixth Series Supplemental Indenture dated as of March 6, 2017, the Twenty-Seventh Series Supplemental Indenture dated as of October 1, 2017, the Twenty-Eighth Series Supplemental Indenture dated as of March 1, 2018, the Twenty-Ninth Series Supplemental Indenture dated as of March 1, 2018, the Thirtieth Series Supplemental Indenture dated as of April 3, 2019, the Thirty-First Series Supplemental Indenture dated as of July 2, 2019, the Thirty-Second Series Supplemental Indenture dated as of December 16, 2019, the Thirty-Third Series Supplemental Indenture dated as of December 16, 2019, the Thirty-Fourth Series Supplemental Indenture dated as of May 29, 2020, the Thirty-Fifth Series Supplemental Indenture dated as of May 29, 2020, the Thirty-Sixth Series Supplemental Indenture dated as of October 5, 2020, the Thirty-Seventh Series Supplemental Indenture dated as of April 5, 2021, the Thirty-Eighth Series Supplemental Indenture dated June 28, 2021, the Thirty-Ninth Series Supplemental Indenture dated September 13, 2022, the Fortieth Series Supplemental Indenture dated September 13, 2022, the Forty-First Series Supplemental Indenture dated September 13, 2022, the Forty-Second Series Supplemental Indenture dated March 28, 2023, the Forty-Third Supplemental Indenture dated June 15, 2023, the Forty-Fourth Series Supplemental Indenture dated September 8, 2023, the Forty-Fifth Series Supplemental Indenture dated September 8, 2023, the Forty-Sixth Series Supplemental Indenture dated September 8, 2023, the Forty-Seventh Supplemental Indenture dated January 2, 2024, the Forty-Eighth Series Supplemental Indenture, dated February 15, 2024, the Forty-Ninth Series Supplemental Indenture, dated February 15, 2024, the Fiftieth Series Supplemental Indenture, dated February 15, 2024 and the Fifty-First Series Supplemental Indenture dated August 13, 2024 (collectively, the Base Indenture as so supplemented, the “Original Indenture”), as further supplemented by a Fifty-Second Series Supplemental Indenture and a Fifty-Third Series Supplemental Indenture, each to be dated as of the Closing Date (as defined herein) (collectively with the Original Indenture, the “Indenture”) between the Company and the Trustee.
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The Company has prepared and filed with the British Columbia Securities Commission (the “Reviewing Authority”) and the Canadian securities regulatory authorities (together with the Reviewing Authority, the “Qualifying Authorities”) of each of the other provinces of Canada (including British Columbia, collectively, the “Qualifying Provinces”) in accordance with National Instruments 44-101 Short Form Prospectus Distributions (“National Instrument 44-101”) and 44-102 Shelf Distributions (“National Instrument 44-102”), and BC Instrument 44-503 Exemption from Certain Prospectus Requirements for Canadian Well-known Seasoned Issuers issued by the Reviewing Authority and equivalent blanket orders issued by the other Qualifying Authorities, in each case as may be amended, substituted or varied from time to time (collectively, the “WKSI Blanket Orders”), a short form base shelf prospectus dated August 2, 2024 relating to debt securities, preferred shares, common shares, warrants to purchase equity securities, warrants to purchase debt securities, share purchase contracts, share purchase or equity units and subscription receipts (in the English and French languages, as applicable, the “Shelf Prospectus”) and has obtained from the Reviewing Authority a receipt evidencing the receipt or deemed receipt, as applicable, for the Shelf Prospectus from each of the Qualifying Authorities pursuant to Multilateral Instrument 11-102 – Passport System and National Policy 11-202 – Process for Prospectus Reviews in Multiple Jurisdictions.
The Company will prepare and file with the Qualifying Authorities, in accordance with National Instrument 44-102 and the WKSI Blanket Orders (collectively, the “Shelf Procedures”), a prospectus supplement dated the date hereof to the Shelf Prospectus in respect of the offering of the Securities setting forth the Shelf Information (as defined below) (the “Prospectus Supplement”), in both the English and French languages, by the earlier of: (a) the date the Prospectus Supplement is first sent or delivered to a purchaser; and (b) two Business Days after the execution and delivery of this Agreement.
The information included in the Prospectus Supplement that is omitted from the Shelf Prospectus but that is required under the Shelf Procedures to be included in the Prospectus Supplement is referred to as the “Shelf Information”.
The Shelf Prospectus, including the documents and any other information expressly incorporated by reference therein, is herein referred to as the “Prospectus”, except that when the Prospectus Supplement is furnished to the Agents for use in connection with the offering of the Securities in Canada or filed with the Qualifying Authorities, the term “Prospectus” shall include the Prospectus Supplement, including the documents and any other information expressly incorporated by reference therein. Any amendment to the Prospectus, any amended or supplemental prospectus or auxiliary material, information, evidence, return, report, application, statement or document relating to the sale of the Securities that may be filed by or on behalf of the Company under the securities laws of the Qualifying Provinces prior to the Closing Date or, where such document is deemed to be incorporated by reference in the Prospectus, prior to the expiry of the period of distribution of the Securities in Canada, is referred to herein collectively as the “Supplementary Material”.
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The Company hereby agrees with the Agents as follows:
| 1. | The Company agrees to create and issue the Securities and appoint the Agents as its sole and exclusive agents to offer for sale on a best efforts basis in reliance on the representations and warranties herein contained, and upon and subject to the terms and conditions hereinafter stated, up to: (i) Cdn. $1,100,000,000 principal amount of 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055 (the “Series CAR Notes”) at a price of Cdn. $999.65 per Cdn. $1,000 principal amount of Series CAR Notes plus accrued interest, if any, from April 21, 2025 to the date of delivery; and (ii) Cdn. $500,000,000 principal amount of 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 (the “Series CAS Notes”) at a price of Cdn. $999.59 per Cdn. $1,000 principal amount of Series CAS Notes plus accrued interest, if any, from April 21, 2025 to the date of delivery. The Series CAR Notes will be issued pursuant to the Base Indenture as supplemented by the Fifty-Second Series Supplemental Indenture to be dated as of the Closing Date. The Series CAS Notes will be issued pursuant to the Base Indenture as supplemented by the Fifty-Third Series Supplemental Indenture to be dated as of the Closing Date. |
| 2. | (a) | The Company understands that the Agents or their affiliates will offer the Securities for sale on a best efforts basis, on behalf of the Company in the Qualifying Provinces. |
| (b) | The Agents agree to offer the Securities only in accordance with, and in a manner permitted by, the laws of each jurisdiction in which such Securities are permitted to be offered, as described under “Plan of Distribution” in the Prospectus Supplement. |
| (c) | The Company has complied and will comply with the requirements of Part 6A of National Instrument 44-102 to enable the satisfaction (or reliance on an exemption therefrom, as the case may be) of requirements under Canadian Securities Laws to deliver, send or provide access to the Shelf Prospectus, as supplemented by the Prospectus Supplement (as so supplemented, the “Offering Prospectus”), and any amendment thereto, through access thereto. |
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| (d) | The Agents shall satisfy any request for electronic or paper copies of the Offering Prospectus or any amendment thereto in accordance with the requirements of National Instrument 44-102, without charge. |
| (e) | In addition, in connection with the distribution of the Securities, each Agent (i) represents that it has not offered or sold, directly or indirectly, and agrees that it will not, directly or indirectly, offer, sell or deliver, any of the Securities in the United States, its territories and its possessions or to, or for the account or benefit of, a “U.S. person” (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”)) and (ii) agrees that it will include a comparable provision to clause (i) above of this Section 2 in any sub-underwriting, banking group or selling group agreement or similar arrangement with respect to the Securities that may be entered into by such Agent. |
| 3. | Payment for the Securities shall be made by the Agents on behalf of purchasers who have agreed to purchase Securities by wire transfer in immediately available funds to the account specified by the Company to the Agents, which notification shall be no later than noon on the Business Day (as defined herein) prior to the date of payment, such payment to be made on the date and at the time and place set forth in Schedule I hereto (or at such other time and place on the same or such other date, not later than the fifth Business Day thereafter, as the Agents and the Company may agree in writing). As used herein, the term “Business Day” means any day other than a day on which banks are permitted or required to be closed in Toronto, Ontario. The time and date of such payment and delivery with respect to the Securities are referred to herein as the “Closing Date”. |
Payment for the Securities shall be made against delivery to the nominee of the depositary specified in Schedule I hereto for the respective accounts of the several Agents of the Securities of one or more global notes (the “Global Notes”) representing the Securities, with any transfer taxes payable in connection with the transfer to purchasers of the Securities duly paid by the Company. Copies of the Global Notes will be electronically transmitted (such as by use of .pdf) to counsel to the Agents for inspection by the Agents not later than 3:00 p.m. (Eastern time) on the Business Day prior to the Closing Date.
In return for the Agents’ services in acting as financial advisors to the Company, in assisting in the preparation of the Prospectus Supplement (and any supplement or amendment thereto), in advising on the final terms and conditions of the Securities, participating in and managing the sale of the Securities, in distributing the Securities, both directly and to other registered dealers and brokers, and in performing administrative work in connection with the distribution of the Securities, the Company agrees to pay to the Agents, at the Closing Date a fee (the “Agents’ Fee”) of (i) Cdn. $7.50 per Cdn. $1,000 principal amount of Series CAR Notes actually sold, exclusive of any applicable goods and services tax or any similar applicable tax; and (ii) Cdn. $7.50 per Cdn. $1,000 principal amount of Series CAS Notes actually sold, exclusive of any applicable goods and services tax or any similar applicable tax. Each Agent shall be entitled to receive that proportion of the aggregate Agents’ Fee paid by the Company in respect of the Series CAR Notes and the Series CAS Notes equal to the percentage listed opposite its name in Schedule II in respect of the Series CAR Notes and the Series CAS Notes, respectively.
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| 4. | During the distribution of the Securities, the Company and RBC Dominion Securities Inc. (“RBC”), Scotia Capital Inc. (“Scotia”), and TD Securities Inc. (“TD”, and together with RBC and Scotia, the “Representatives”) shall approve in writing (approval given by e-mail to be considered given in writing), prior to such time marketing materials (as such term is defined in National Instrument 41-101 General Prospectus Requirements (“NI 41-101”)) are provided to potential investors resident in Canada, any marketing materials reasonably requested to be provided by the Agents to any potential investor of the Securities, such marketing materials to comply with Canadian Securities Laws. The Company shall file such marketing materials with the Qualifying Authorities in accordance with Canadian Securities Laws. Any such filing shall constitute the Agents’ authority to use such marketing materials in connection with the Offering. The Company, and the Agents, on a several basis, covenant and agree not to provide any potential investor resident in Canada with any marketing materials other than those approved in accordance with this Section 4 and limited-use versions thereof. |
| 5. | The Company represents and warrants to each Agent that: |
| (a) | The Company is eligible to use the Shelf Procedures; |
| (b) | At the time of the filing of the Shelf Prospectus, the Corporation was eligible to use the exemptions from certain prospectus requirements set out in the WKSI Blanket Orders; |
| (c) | The Reviewing Authority has issued a receipt evidencing the receipt or deemed receipt, as applicable, for the Shelf Prospectus from each of the Qualifying Authorities; no Qualifying Authority or any court has issued an order preventing or suspending the use of the Prospectus relating to the proposed offering of the Securities or preventing the distribution of the Securities or instituted proceedings for that purpose; |
| (d) | The Company is a reporting issuer not in default under all applicable securities laws in each of the Qualifying Provinces (where such concept exists) and the respective rules and regulations under such laws and is in compliance with its obligations thereunder in all material respects and there has been no material change (within the meaning of such term under Canadian Securities Laws) relating to the Company which has occurred since December 31, 2024 and with respect to which the requisite material change report has not been filed on a non-confidential basis with the Qualifying Authorities, except to the extent that the offering contemplated hereby may constitute a material change; |
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| (e) | (i) As of the date thereof, the Shelf Prospectus complied in all material respects with all applicable securities laws in each of the Qualifying Provinces and the respective rules, regulations and blanket orders under such laws including, without limitation, the Shelf Procedures and applicable published policy statements of securities regulatory authorities in such provinces (collectively, the “Canadian Securities Laws”), and, at the time of its delivery to the Agents and the Agents’ offer for sale to the public of the Securities, the Prospectus complied and will comply, as applicable, in all material respects with the Canadian Securities Laws; (ii) the Shelf Prospectus, as supplemented by the Prospectus Supplement, or any amendment or supplement thereto, as of the applicable filing date, will constitute full, true and plain disclosure of all material facts relating to the Company and the Securities and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or which is necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading; and (iii) the documents incorporated by reference in the Prospectus, when they were filed with the Qualifying Authorities, were prepared in accordance with the Canadian Securities Laws in all material respects; and any further documents so filed and incorporated by reference in the Prospectus, or any further amendment or supplement thereto, when such documents are filed with the Qualifying Authorities, will be prepared in accordance with the Canadian Securities Laws in all material respects; provided, however, that the representation and warranty set forth in this clause 5(e) shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by the Agents (“Agent Information”) expressly for use therein; |
| (f) | There are no reports or information that in accordance with the requirements of the Canadian Securities Laws must be made publicly available in connection with the offering of the Securities that have not been made publicly available as required (other than reports or information required to be made public after the date hereof pursuant to the Shelf Procedures); there are no contracts or documents required to be filed with any Qualifying Authority in connection with the Shelf Prospectus or the Prospectus Supplement that have not been filed as required pursuant to Canadian Securities Laws and delivered to the Agents; |
| (g) | The consolidated financial statements of the Company incorporated by reference in the Prospectus present fairly the consolidated financial position of the Company and its subsidiaries as of the dates indicated and the consolidated results of operation and the consolidated changes in financial position of the Company and its subsidiaries for the periods specified and such financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, consistently applied throughout the periods involved; the selected financial data included in the Prospectus present fairly the information shown therein and have been compiled on a basis consistent with that of the consolidated financial information included in the Prospectus; |
| (h) | Deloitte LLP, who have reported upon the audited consolidated financial statements of the Company included in the Prospectus are, and during the periods covered by their report were, independent with respect to the Company within the meaning of the Business Corporations Act (British Columbia) and applicable Canadian Securities Laws; |
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| (i) | Since the respective dates as of which information is given in the Prospectus, there has not been any material change in the capital stock or long-term debt of the Company or any of its subsidiaries, except as set forth or contemplated in the Prospectus, or any material adverse change in or affecting the general affairs, assets or properties, business, prospects, results of operations or the condition (financial or otherwise) of the Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”); and except as set forth or contemplated in the Prospectus, neither the Company nor any of its subsidiaries has entered into any transaction or agreement (whether or not in the ordinary course of business) material to the Company and its subsidiaries taken as a whole; |
| (j) | The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the Province of British Columbia, with corporate power and capacity to own its properties and conduct its business as described in the Prospectus, and has been duly qualified as an extra-provincial corporation for the transaction of business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties, or conducts any business, so as to require such qualification, other than where the failure to be so qualified or in good standing would not have a Material Adverse Effect; |
| (k) | TELUS Communications Inc. (“TCI”) has been duly incorporated and is validly existing as a corporation under the laws of British Columbia with corporate power and capacity to own its properties and conduct its business as described in the Prospectus, and has been duly qualified as an extra-provincial corporation or has made all necessary extra-provincial registrations for the transaction of business and is in good standing under the laws of each jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, other than where the failure to be so qualified or in good standing would not have a Material Adverse Effect; and all the outstanding shares of capital stock of TCI have been duly authorized and validly issued, are fully-paid and non-assessable, and are owned by the Company, free and clear of all liens, encumbrances, security interests and claims, except for any liens, encumbrances, security interests and claims which, singly or in the aggregate, are not material to the Company and its subsidiaries, taken as a whole; |
| (l) | TELUS International (Cda) Inc. (“TELUS International”) has been duly incorporated and is validly existing as a corporation under the laws of British Columbia with corporate power and capacity to own its properties and conduct its business as described in the Prospectus, and has been duly qualified as an extra-provincial corporation or has made all necessary extra-provincial registrations for the transaction of business and is in good standing under the laws of each jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, other than where the failure to be so qualified or in good standing would not have a Material Adverse Effect; and all the outstanding shares of capital stock of TELUS International that are owned by the Company, directly or indirectly, have been duly authorized and validly issued, are fully-paid and non-assessable, and are owned by the Company, free and clear of all liens, encumbrances, security interests and claims, except for any liens, encumbrances, security interests and claims which, singly or in the aggregate, are not material to the Company and its subsidiaries, taken as a whole; |
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| (m) | TCI and TELUS International are the only subsidiaries of the Company that separately own assets constituting more than 10% of the consolidated assets of the Company and that generated sales and operating revenues that exceeded 10% of the consolidated sales and operating revenues of the Company for the year ended December 31, 2024. In addition, all of the assets, sales and operating revenues of the Company’s other subsidiaries (other than TCI and TELUS International), together do not exceed 20% of the Company’s total consolidated assets or 20% of the Company’s total consolidated sales and operating revenues for the year ended December 31, 2024. The assets, sales and operating revenues of TELUS International contributed less than 15% to the Company’s total consolidated assets and less than 15% to the Company’s total consolidated sales and operating revenues, as at, or for the year ended, December 31, 2024, respectively; |
| (n) | This Agreement has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, subject to (i) bankruptcy, insolvency, liquidation, moratorium, reorganization, arrangement or other laws of general application relating to or affecting the enforcement of rights of creditors; (ii) general principles of equity, including the qualification that equitable remedies, including, without limitation, specific performance and injunction, may be granted only in the discretion of a court of competent jurisdiction, and the qualification that equitable remedies may not be available in any case against the Company; (iii) statutory and inherent powers of a court to stay proceedings before it and to grant relief from forfeiture; and (iv) the limitation that the rights of indemnity, contribution and waiver may be limited by applicable laws; |
| (o) | The Securities have been duly authorized, and, when issued and delivered pursuant to this Agreement and the Indenture, will have been duly executed, authenticated (when duly countersigned by the Trustee), issued and delivered and will constitute valid and binding obligations of the Company, enforceable in accordance with their terms, (except as (i) the enforceability thereof may be limited by bankruptcy, insolvency, liquidation, moratorium, reorganization, arrangement or other laws of general application relating to or affecting the enforcement of rights of creditors and (ii) rights of acceleration and the availability of equitable remedies may be limited by equitable principles of general applicability) and entitled to the benefits provided by the Indenture; and, when executed and delivered by the Company and the Trustee, the Indenture will constitute a valid and binding instrument, enforceable against the Company in accordance with its terms; (except as (i) the enforceability thereof may be limited by bankruptcy, insolvency, liquidation, moratorium, reorganization, arrangement or other laws of general application relating to or affecting the enforcement of rights of creditors, (ii) rights of acceleration and the availability of equitable remedies may be limited by equitable principles of general applicability, and (iii) rights to indemnity and contribution may be limited by applicable law) and the Securities and the Indenture conform or will conform, in all material respects, to the descriptions thereof in the Prospectus; |
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| (p) | (i) The Original Indenture does meet, and the Indenture and the form and terms of the Securities will meet, all legal requirements under the Business Corporations Act (Ontario) and the Business Corporations Act (British Columbia), and (ii) the provisions of the Business Corporations Act (Ontario) and the Business Corporations Act (British Columbia) have been complied with, or will have been complied with no later than the time of delivery of the Securities by the Company, in respect of the issue, authentication (when duly countersigned by the Trustee) and delivery of the Securities; |
| (q) | Neither the Company nor TCI is, or with the giving of notice or lapse of time or both would be, in violation of or in default under, its Notice of Articles, Articles or Certificate of Incorporation, as the case may be, or any indenture, mortgage, deed of trust, loan agreement or other agreement, license or instrument to which the Company or TCI is a party or by which either of them or any of their respective properties is bound, except for violations and defaults which, singly or in the aggregate, would not have a Material Adverse Effect and except as disclosed in the Prospectus; the issue and sale of the Securities and the performance by the Company of all of its obligations under the Securities, the Indenture and this Agreement and the consummation of the transactions herein and therein contemplated will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other agreement, license or instrument to which the Company or TCI is a party or by which the Company or TCI is bound or to which any of the property or assets of the Company or TCI is subject, except for any conflicts, breaches or defaults which, singly or in the aggregate, would not have a Material Adverse Effect or a material adverse effect on the Company’s ability to issue and sell the Securities and perform all of its obligations under the Securities, the Indenture and this Agreement and the Agents’ ability to offer for sale the Securities, nor will any such action result in any violation of the provisions of (i) the Notice of Articles, Articles or Certificate of Incorporation, as the case may be, of the Company or TCI, or (ii) any applicable law or statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company, TCI or any of their respective properties, except for any violations in the case of this clause (ii) which, singly or in the aggregate, would not have a Material Adverse Effect; and no consent, approval, authorization, order, license, registration or qualification of or with any such court or governmental agency or body is required for the issue and sale of the Securities or the consummation by the Company of the transactions contemplated by this Agreement or the Indenture, except such consents, approvals, authorizations, orders, licenses, registrations or qualifications as have been obtained (or will be obtained prior to the Closing Date) under Canadian Securities Laws; |
| (r) | Other than as set forth or contemplated in the Prospectus, there are no legal or governmental investigations, actions, suits or proceedings pending or, to the knowledge of the Company, threatened before any court or before or by any federal, provincial, state, municipal or other governmental or public department, commission, board, agency or body, domestic or foreign (including, without limitation, proceedings, inquiries, or investigations of Innovation, Science and Economic Development Canada (“ISED”) or Department of Canadian Heritage (“Canadian Heritage”), the Canadian Radio-television and Telecommunications Commission (the “CRTC”) or the Competition Bureau (the “Bureau”), or arising under the Telecommunications Act (Canada) (the “Telecommunications Act”), the Radiocommunication Act (Canada) (the “Radiocommunication Act”), the Broadcasting Act (Canada) (the “Broadcasting Act”) or the Competition Act (Canada) (the “Competition Act”)), against or involving the Company or TCI or any of their respective properties or to which the Company or TCI is or may be a party or to which any property of the Company or TCI is or may be the subject which, singly or together with any related such determinations, would have, or would reasonably be expected to have, a Material Adverse Effect and, to the best of the Company’s knowledge, no such proceedings are threatened or contemplated by governmental authorities or threatened by others; nor are there any matters under discussion with any governmental authorities relating to taxes, governmental charges or assessments asserted by any such authority which would have a Material Adverse Effect; |
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| (s) | The Company and TCI have good leasehold title or good and marketable title to material real property and buildings and good title to material personal property; and all material real property held under leases are held by the Company and TCI under valid, existing and enforceable leases, as such leases pertain to the Company and TCI, with such exceptions as do not interfere with the use made or proposed to be made of such property and buildings by the Company or TCI or would not, singly or in the aggregate, have a Material Adverse Effect; and all material items of real property and material personal property owned by the Company and TCI are held free and clear of all liens, encumbrances and defects except such as are described or referred to in the Prospectus, or such as would not have a Material Adverse Effect; |
| (t) | No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company or any of its subsidiaries on the other hand, which is required by the Canadian Securities Laws to be described in the Prospectus which is not so described; |
| (u) | The Company and TCI have filed all material federal, provincial, local and foreign tax returns which have been required to be filed and have paid all taxes shown thereon and all assessments received by them or any of them to the extent that such taxes are material and have become due and are not being contested in good faith; and, except as disclosed in the Prospectus, to the best of the Company’s knowledge, there are no tax deficiencies which have been or might reasonably be expected to be asserted or threatened against the Company or TCI which would, singly or in the aggregate, have a Material Adverse Effect; |
| (v) | Each of the Company and TCI owns, possesses or has adequate and enforceable rights to all licenses, permits, waivers, certificates, registrations, consents, orders, approvals and other authorizations from, and has made all declarations and filings with, all federal, provincial, and other governmental authorities (including foreign regulatory agencies), all self-regulatory organizations and all courts and other tribunals, domestic or foreign, necessary to own or lease, as the case may be, and to operate its properties and to carry on its business as conducted as of the date hereof, except where any failure to possess or obtain any such license, permit, waiver, certificate, registration, consent, order, approval or other authorization or to make any such declaration or filing or to fulfill any condition to an authorization, would not, singly or in the aggregate, have a Material Adverse Effect, and neither the Company nor TCI has received any actual notice of any proceeding relating to revocation or modification of any such license, permit, waiver, certificate, registration, consent, order, approval or other authorization, except as described in the Prospectus or where any revocation or modification would not, singly or in the aggregate, have a Material Adverse Effect; and each of the Company and TCI is in compliance with all laws and regulations relating to the conduct of its business as conducted as of the date hereof, except where any non-compliance would not, singly or in the aggregate, have a Material Adverse Effect; |
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| (w) | The Company and TCI are in compliance with each licence, permit, approval, authorization, certificate or waiver necessary to operate its business as described in the Prospectus (“Licences”) held by them and are not in violation of, or in default in any respect under, the applicable statutes, ordinances, rules, regulations, orders, policies or decrees of any governmental entities, regulatory agencies or bodies having, asserting or claiming jurisdiction over it or over any part of its respective operations or assets, except for such violations or defaults which would not singly or in the aggregate have a Material Adverse Effect. Except as described in or contemplated by the Prospectus, the Licences held by the Company and TCI contain no restrictions that are materially burdensome to the Company or its subsidiaries, taken as a whole, except as disclosed in the Prospectus; |
| (x) | There are no existing or, to the best knowledge of the Company, threatened labour disputes with the employees of the Company or TCI which are likely to have a Material Adverse Effect, other than as disclosed in the Prospectus; |
| (y) | The Company and TCI (i) are in compliance with any and all applicable foreign, federal, provincial and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses, and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except where such non-compliance with Environmental Laws, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals would not, singly or in the aggregate, have a Material Adverse Effect; any costs or liabilities associated with compliance with Environmental Laws would not, singly or in the aggregate, have a Material Adverse Effect; |
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| (z) | Except as disclosed in the Prospectus, to the best of the Company’s knowledge, there is no pending or threatened change in the Communications Statutes (as defined herein) which would have a Material Adverse Effect. “Communications Statutes” means the Telecommunications Act, the Canadian Radio-television and Telecommunications Commission Act (Canada), the Radiocommunication Act, the Broadcasting Act or other statutes of Canada specifically relating to the regulation of the Canadian telecommunications industry (including for this purpose the orders, rules, regulations, directives, decisions, notices and policies promulgated pursuant to such statutes, including the Radiocommunication Regulations (Canada) (the “Radiocommunication Regulations”), the Broadcasting Distribution Regulations (Canada), the Canadian Telecommunications Common Carrier Ownership and Control Regulations (the “Ownership Regulations”) and the Direction to the CRTC (Ineligibility of Non-Canadians) (the “CRTC Direction”)) and applicable statutes or regulations, if any, of any province of Canada specifically relating to the regulation of the Canadian telecommunications industry and the orders, rules, regulations, directives, decisions, notices and policies promulgated thereunder; |
| (aa) | The Company and TCI have timely filed all renewal applications with respect to all Licenses held by any of them, except where the failure to file would not result in a Material Adverse Effect; no protests or competing applications have been filed with respect to such renewal applications and nothing has come to the Company’s attention that would lead it to conclude that such renewal applications will not be granted by the appropriate regulatory agency or body in the ordinary course or that its Licenses will be terminated, except where the consequence of such non-compliance, or applications not being granted or such Licenses being terminated would not have a Material Adverse Effect; and the Company and TCI are authorized under the Communications Statutes and the rules and regulations promulgated thereunder to continue to provide the services which are the subject of such renewal applications during the pendency thereof; |
| (bb) | The material business and operations conducted and proposed to be conducted by the Company and TCI, as described in the Prospectus, are not regulated by any federal or provincial utility or rate-regulating commission, other than the CRTC, ISED, and the Federal Communications Commission in the areas in which the Company or TCI conducts or proposes to conduct its material business and operations as described in the Prospectus, and the Company and TCI are not, and based on existing regulations will not be, required to obtain any license from any such utility or rate-regulating commission, other than the CRTC, ISED, and the Federal Communications Commission, except where any failure to possess or obtain any such license would not, singly or in the aggregate, have a Material Adverse Effect; except as set forth in the Prospectus, there are no regulatory matters required to be described in the Prospectus that are not so described therein in order to make the statements therein not misleading; |
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| (cc) | TCI and Olds Fibre Ltd. are the only telecommunications common carriers (as such term is used in the Telecommunications Act and in accordance with the Ownership Regulations) that are controlled by the Company, and each such company is: |
| (i) | eligible to operate as a Canadian carrier in Canada, as defined under and in accordance with the Telecommunications Act and the Ownership Regulations; |
| (ii) | not in violation of the prohibition contained in subsection 16(4) of the Telecommunications Act against operating in Canada as a telecommunications common carrier unless it is eligible under Section 16 of the Telecommunications Act to do so; and |
| (iii) | not controlled by any persons that are not Canadian, in accordance with the meanings ascribed to the term “control” under the Telecommunications Act and the term “Canadian” under the Ownership Regulations; |
| (dd) | Not less than 80% of the members of the board of directors of TCI and Olds Fibre Ltd. are individual Canadians, as defined under the Ownership Regulations, and Canadians, as defined under the Ownership Regulations, beneficially own, directly or indirectly, in the aggregate and otherwise than by way of security only, all of the issued and outstanding voting shares, as defined under the Ownership Regulations, of each such company; |
| (ee) | TCI is the only radiocommunication service provider (as such term is used in the Radiocommunication Regulations) that is controlled by the Company, and TCI: |
| (i) | is eligible to hold radio authorizations authorizing the operation in Canada of radio apparatus, as defined under and in accordance with the Radiocommunication Act and the Radiocommunication Regulations; |
| (ii) | is not in violation of the prohibition contained in subsection 4(1) of the Radiocommunication Act against operating radio apparatus in Canada, except under and in accordance with a radio authorization issued by the Minister of Innovation, Science and Industry; |
| (iii) | is not controlled by any persons that are not Canadian, in accordance with the meanings ascribed to the term “control” under the Telecommunications Act and the term “Canadian” under the Ownership Regulations; and |
| (iv) | is eligible to be issued a radio authorization under subsection 9(1) of the Radiocommunication Regulations; |
| (ff) | TCI is Canadian, as defined under the Ownership Regulations; |
| (gg) | TCI is the only holder of licenses to operate broadcasting undertakings (as such term is used in the Broadcasting Act) that is controlled by the Company, and it is: |
| (i) | eligible to hold broadcasting licenses authorizing the operation in Canada of distribution and programming undertakings, as defined under and in accordance with the Broadcasting Act; |
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| (ii) | not in violation of the prohibition contained in subsection 32(1) of the Broadcasting Act; and |
| (iii) | not a non-Canadian (as that term is defined in the CRTC Direction); |
| (hh) | The Company, in respect of its ownership of and control over TCI, is a carrier holding corporation and a qualified corporation, as defined under the Ownership Regulations; |
| (ii) | Neither the Company nor TCI is in violation of any judgment, decree, order, writ, law, statute, rule or regulation rendered or enacted in Canada respecting telecommunications and the regulation within Canada of telecommunications common carriers, as defined in the Telecommunications Act, or respecting radiocommunication and the operation within Canada of radio apparatus, as defined in the Radiocommunication Act, applicable to the Company or TCI, or any interpretation or policy relating thereto that is applicable to the Company or TCI except where the consequence of such violation would not have a Material Adverse Effect; |
| (jj) | To the best of the Company’s knowledge, the Company and TCI own, license, possess or have adequate and enforceable rights throughout Canada to all patents, patent licenses, trademarks, service marks and trade names necessary to carry on their business as presently conducted (except where the failure to own, license or possess such intellectual property rights would not, singly or in the aggregate, have a Material Adverse Effect), and, except as described in the Prospectus, neither the Company nor TCI has received any notice of infringement of or conflict with asserted rights of others with respect to any patents, patent licenses, trademarks, service marks or trade names, which would, singly or in the aggregate, result in a Material Adverse Effect; |
| (kk) | Neither the Company nor any of its subsidiaries or affiliates has taken, nor will any of them take, directly or indirectly, any action designed to, or that would reasonably be expected to, cause or result in the stabilization or manipulation of the price of the Securities in order to facilitate the sale or resale of the Securities; |
| (ll) | There have been no “significant acquisitions” since January 1, 2024 for which the Company is required, pursuant to applicable Canadian Securities Laws, including Part 8 of National Instrument 51-102 Continuous Disclosure Obligations, to file a business acquisition report; |
| (mm) | No stamp duty, registration or documentary taxes, duties or similar charges are payable under the laws of the Provinces of British Columbia or Ontario or the federal laws of Canada in connection with the creation, issuance or sale of the Securities by the Company or the authorization, execution, delivery and performance of the Indenture and this Agreement; |
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| (nn) | As of December 31, 2024, the Company maintained effective “internal control over financial reporting” (as defined in Rules 13a-15(f) and 15d-15(f) of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (“NI 52-109”)) that were designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company has prepared a report of management on the issuer’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) for the Company’s 2024 fiscal year and have concluded that, as of December 31, 2024, there (i) were no significant deficiencies (except as disclosed to the Representatives) or material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information and (ii) was no fraud, whether or not material, that involves management or other employees who have significant role in the Company’s internal control over financial reporting; |
| (oo) | The Company maintains an effective system of “disclosure controls and procedures” (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act and in NI 52-109) that is designed to ensure that material information relating to the Company is made known to the Company’s management during the periods in respect of which reports under the Exchange Act are being prepared. As of December 31, 2024, the Company has carried out evaluations of the effectiveness of its disclosure controls and procedures as required by Rule 13a-15 and Rule 15d-15 of the Exchange Act and NI 52-109, respectively; and |
| (pp) | There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities as such, to comply with any provision of the U.S. Sarbanes-Oxley Act of 2002, as amended and the rules and regulations promulgated in connection therewith, including Section 402 related to loans and Sections 302 and 906 related to certifications. |
| 6. | The Company covenants and agrees with each of the several Agents as follows: |
| (a) | To comply with the requirements of the Shelf Procedures; to file the Prospectus Supplement in each of the Qualifying Provinces within the time periods required by applicable Canadian Securities Laws; to notify the Agents promptly in writing (i) when any supplement to the Prospectus or any amended Prospectus shall have been filed; (ii) of any request by any Qualifying Authority to amend the Prospectus or to provide additional information; and (iii) of the issuance by any Qualifying Authority of any order having the effect of ceasing or suspending the distribution of the Securities or the trading in the Securities, or of the institution or, to the knowledge of the Company, threatening of any proceedings for any such purpose. The Company will use every reasonable effort to prevent the issuance of any order preventing or suspending the use of the Prospectus or any order ceasing or suspending the distribution of the Securities or the trading in the Securities and, if any such order is issued, to obtain a revocation thereof at the earliest possible time; |
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| (b) | Not to file or to make, at any time, any amendment or supplement to the Shelf Prospectus that the Agents shall not have previously been advised of and furnished with a copy of or that the Agents shall have reasonably objected to; |
| (c) | To furnish to the Agents, without charge: (i) at the time of filing the Prospectus Supplement, the Prospectus printed in the English language signed on behalf of the Company and its directors in the manner required by the Canadian Securities Laws, together with copies of any contract or documentation supplemental thereto required to be filed under the applicable laws of any of the Canadian provinces; (ii) at the time of filing the Prospectus Supplement with the Autorité des marchés financiers, the Prospectus (and any supplements or amendments thereto) printed in the French language signed on behalf of the Company and its directors in the manner required by the laws of the Province of Quebec, together with copies of any contract or documentation supplemental thereto required to be filed under the applicable laws of the Province of Quebec; and (iii) during the period mentioned in paragraph (d) below the Agents’ reasonable requirements of commercial copies of the Prospectus (and any amendments thereto) printed in the English and French languages, as applicable; |
| (d) | If, during such period after the first date of the public offering of the Securities as in the opinion of counsel for the Company, the Prospectus is required by law to be delivered in connection with sales by an Agent or dealer, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Prospectus in order to comply with applicable law, forthwith notify the Agents, or if, in the opinion of counsel for the Agents, it is necessary to amend or supplement the Prospectus to comply with applicable law, in either case, subject to paragraph (b) above, to forthwith prepare, file with the Qualifying Authorities and furnish, at its own expense, to the Agents and to the dealers (whose names and addresses the Agents will furnish to the Company in writing) to which Securities may have been sold by the Agents and to any other dealers upon written request, either amendments or supplements to the Prospectus so that the statements in the Prospectus so amended or supplemented will comply with the applicable law; |
| (e) | Until the distribution of the Securities is completed, to file all documents required to be filed with the Qualifying Authorities under applicable Canadian Securities Laws; |
| (f) | To fulfill and comply with, as soon as possible and in any event not later than the earlier of: (i) the date the Prospectus Supplement is first sent to a purchaser or access is otherwise made available to such purchaser in accordance with applicable Canadian Securities Laws; and (ii) two Business Days after the execution and delivery of this Agreement, the requirements of the Canadian Securities Laws to be fulfilled or complied with to enable the Securities to be lawfully distributed in the Qualifying Provinces through the Agents or any other investment dealers or brokers registered as such in the Canadian provinces and acting in accordance with the terms of their registrations and the Canadian Securities Laws; |
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| (g) | During the period beginning on the date hereof and continuing to and including the Business Day following the Closing Date, not to offer, sell, contract to sell or otherwise dispose of any debt securities of or guaranteed by the Company which are substantially similar to the Securities; |
| (h) | To use the net proceeds received by the Company from the sale of the Securities pursuant to this Agreement in the manner specified in the Prospectus under the caption “Use of Proceeds”; and |
| (i) | Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all costs and expenses incidental to the performance of its obligations hereunder, including without limiting the generality of the foregoing, the fees and disbursements of counsel to the Agents and all costs and expenses (i) incidental to the preparation, issuance, execution, authentication and delivery of the Securities, including any expenses of the Trustee, (ii) incidental to the preparation, printing and filing under the Canadian Securities Laws of the Prospectus (including all exhibits, amendments and supplements thereto), (iii) payable in connection with the registration or qualification and determination of eligibility for investment of the Securities under the laws of such jurisdictions as the Agents may designate, (iv) payable in connection with the printing (including word processing and duplication costs) and delivery of this Agreement and the Indenture and the furnishing to Agents and dealers of copies of the Prospectus, including mailing and shipping, as herein provided, (v) payable to rating agencies in connection with the rating of the Securities, (vi) incurred by the Company in connection with a “road show” presentation to potential investors, and (vii) of any transfer agent. |
| 7. | The several obligations of the Agents hereunder shall be subject to the following conditions: |
| (a) | The representations and warranties of the Company contained herein are true and correct on and as of the Closing Date as if made on and as of the Closing Date and the Company shall have complied with all agreements and all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date; |
| (b) | At the Closing Date, no order having the effect of ceasing or suspending the distribution of the Securities or the trading in any other securities of the Company shall have been issued and not rescinded, revoked or withdrawn by any securities commission, securities regulatory authority or stock exchange in Canada or the United States and no proceedings for that purpose shall have been instituted or pending or, to the knowledge of the Company, shall be contemplated by any securities commission, securities regulatory authority or stock exchange in Canada or the United States; any request on the part of any Qualifying Authority for additional information shall have been complied with or withdrawn; and the Prospectus Supplement containing the Shelf Information shall have been filed with the Qualifying Authorities in accordance with the Shelf Procedures; |
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| (c) | Subsequent to the execution and delivery of this Agreement and prior to the Closing Date, there shall not have occurred any downgrading, nor shall any notice referring to the Company have been given by any “nationally recognized statistical rating organization”, as such term is defined in Section 3(a)(62) of the Exchange Act, or any “designated rating organization,” as such term is defined in National Instrument 41-101 of (i) any downgrading, (ii) any intended or potential downgrading, or (iii) any review for a possible change that does not indicate the direction of the possible change in the rating accorded any securities of or guaranteed by the Company; |
| (d) | The Prospectus, as supplemented or amended by any prospectus supplement or amendment, does not contain, as of the Closing Date, any untrue statement of material fact or omit to state a material fact that is required to be stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made (other than in respect of any Agent Information); |
| (e) | The Agents shall have received on and as of the Closing Date a certificate of an executive officer of the Company, with specific knowledge about the Company’s financial matters, satisfactory to the Agents to the effect set forth in Sections 7(a), 7(b), 7(c), and 7(d) (with respect to the respective representations, warranties, agreements and conditions of the Company) and to the further effect that there has not occurred any development involving a Material Adverse Effect from that set forth or contemplated in the Prospectus; |
| (f) | The Agents shall have received on the filing date of the Prospectus Supplement: |
| (i) | opinions of Norton Rose Fulbright Canada LLP, counsel to the Company, dated as of the relevant filing date, to the effect that the French language version of each of (a) the Shelf Prospectus (other than the “Earnings Coverage Ratios” section of the Shelf Prospectus (the “Prospectus Financial Section”)), (b) the Prospectus Supplement (other than the “Consolidated Capitalization” and “Earnings Coverage Ratios” sections of the Prospectus Supplement (collectively, the “Supplement Financial Sections”, and together with the Prospectus Financial Section, the “Financial Sections”)), (c) the indicative term sheets in respect of each of the Series CAR Notes and the Series CAS Notes (collectively, the “Indicative Term Sheets”) expressly incorporated by reference in the Prospectus Supplement; and (d) the final term sheets in respect of each of the Series CAR Notes and the Series CAS Notes (collectivley, the “Final Term Sheets”), expressly incorporated by reference in the Prospectus Supplement, is in all material respects a complete and proper translation of the English language version of each of the Shelf Prospectus, the Prospectus Supplement, the Indicative Term Sheets, and the Final Term Sheets, as the case may be; and |
| (ii) | opinions of Borden Ladner Gervais LLP, Quebec translation counsel to the Company, dated as of such respective filing dates, to the effect that the French language version of each of (a) the annual information form of the Company dated February 13, 2025 (the “2024 AIF”), and (b) the information circular of the Company dated March 14, 2025 (the “2025 Circular”), are in all material respects a complete and proper translation of the English language version of the 2024 AIF and the 2025 Circular, as the case may be. |
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| (g) | The Agents shall have received on the respective filing dates of the documents listed in Section 7(f) above an opinion of Deloitte LLP, auditors of the Company, dated as of such respective filing dates, to the effect that the French language version of each of (i) the Financial Sections, (ii) the audited consolidated financial statements of the Company as at and for the year ended December 31, 2024, together with the report of the independent registered public accounting firm thereon and the notes thereto, and (iii) management’s discussion and analysis of financial results of the Company for the year ended December 31, 2024, contained or incorporated by reference in the Shelf Prospectus, as supplemented by the Prospectus Supplement, includes the same information and in all material respects carries the same meaning as the English language version thereof; |
| (h) | The Agents shall have received on the Closing Date an opinion of Norton Rose Fulbright Canada LLP, Canadian counsel for the Company, or certain other Canadian counsel for the Company reasonably acceptable to the Agents in substantially the form of Annex A-1 hereto including regarding compliance with all the laws of the Province of Quebec relating to the use of the French language in connection with the distribution of the Securities, subject to appropriate limitations and qualifications, dated the Closing Date; the opinion of Norton Rose Fulbright Canada LLP described in this Section 7(h) shall be rendered to the Agents at the request of the Company and shall so state therein, provided that such counsel may rely on opinions of counsel to the Company in jurisdictions where such counsel is not licensed to practice; |
| (i) | The Agents shall have received on the Closing Date an opinion of the Vice President – Telecom Policy & Chief Regulatory Legal Counsel of the Company dated the Closing Date, in substantially the form of Annex B-1 hereto, and a certificate of the Vice President – Telecom Policy & Chief Regulatory Legal Counsel of the Company dated the Closing Date, in substantially the form of Annex B-2 hereto. Such opinion shall be rendered to the Agents at the request of the Company and shall so state therein; |
| (j) | On the date hereof and on the Closing Date, Deloitte LLP shall have furnished to the Agents a letter, dated such date, in form and substance satisfactory to the Agents, containing statements and information of the type customarily included in accountants “comfort letters” to underwriters with respect to the financial statements and certain financial information contained or incorporated by reference in the Prospectus; |
| (k) | The Agents shall have received on and as of the Closing Date an opinion of Osler, Hoskin & Harcourt LLP, Canadian counsel to the Agents, with respect to the validity of the Indenture and the Securities, the Prospectus and other related matters as the Agents may reasonably request, and such counsel shall have received such papers and information as they may reasonably request to enable them to pass upon such matters, provided that such counsel may rely on opinions of counsel to the Company for jurisdictions where such counsel is not licensed to practice; and |
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| (l) | On or prior to the Closing Date, the Company shall have furnished to the Agents such further certificates and documents as the Agents shall reasonably request. |
| 8. | The Company agrees to indemnify and hold harmless each Agent, each affiliate of any Agent which assists such Agent in the distribution of the Securities and each person, if any, who controls any Agent within the meaning of either Section 15 of the U.S. Securities Act or Section 20 of the Exchange Act, and each of their respective directors, officers, employees, agents, and affiliates from and against any and all losses (other than loss of profits), claims, damages and liabilities (including, without limitation, the legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted) caused by any untrue statement or alleged untrue statement of a material fact contained in the Prospectus (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages or liabilities are caused by any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with information relating to any Agent furnished to the Company in writing by such Agent. |
In no event shall the indemnity provided in this Section 8 enure to the benefit of any person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the U.S. Securities Act) from any person who was not guilty of such fraudulent misrepresentation.
Each Agent agrees, severally and not jointly, to indemnify and hold harmless the Company, its directors, its officers who signed the Prospectus, each person who controls the Company within the meaning of Section 15 of the U.S. Securities Act and Section 20 of the Exchange Act, its officers, employees, agents and affiliates to the same extent as the foregoing indemnity from the Company to each Agent, but only with reference to information relating to such Agent furnished to the Company in writing by such Agent expressly for use in the Prospectus and any amendment or supplement thereto.
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If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any person in respect of which indemnity may be sought pursuant to either of the first or third paragraphs of this Section 8, such person (the “Indemnified Person”) shall promptly notify the person against whom such indemnity may be sought (the “Indemnifying Person”) in writing, and the Indemnifying Person, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding and all such fees and expenses shall be reimbursed as they are incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary, (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person, or (iii) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons. Any such separate firm for the Agents, each affiliate of any Agent which assists such Agent in the distribution of the Securities and such control persons of Agents shall be designated in writing by the first of the named Agents on Schedule II hereto and any such separate firm for the Company, its directors, its officers who sign the Prospectus and such control persons of the Company or authorized representatives shall be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify any Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested an Indemnifying Person to reimburse the Indemnified Person for fees and expenses of counsel for which the Indemnified Person is entitled to be reimbursed in accordance with this paragraph, the Indemnifying Person agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such Indemnifying Person of the aforesaid request, and (ii) such Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement. No Indemnifying Person shall, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement (i) includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding, and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.
If the indemnification provided for in the first and third paragraphs of this Section 8 is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Agents on the other hand from the offering of the Securities, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Agents on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Agents on the other shall be deemed to be in the same respective proportions as the net proceeds from the offering of such Securities (before deducting expenses) received by the Company and the aggregate fee payable by the Company to the Agents bear to the aggregate public offering price of the Securities. The relative fault of the Company on the one hand and the Agents on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or by the Agents and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
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The Company and the Agents agree that it would not be just and equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Agents were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8, in no event shall an Agent be required to contribute any amount in excess of such aggregate fee or any portion of such fee actually received. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the U.S. Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Agents’ obligations to contribute pursuant to this Section 8 are several in the percentages set forth opposite their names in Schedule II hereto, and not joint.
The remedies provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.
The indemnity and contribution agreements contained in this Section 8 and the representations and warranties of the Company set forth in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Agent or any person controlling any Agent or by or on behalf of the Company, its officers or directors or any other person controlling the Company, and (iii) acceptance of and payment for any of the Securities.
| 9. | Notwithstanding anything herein contained, any Agent (each, a “Terminating Agent”) may, in its absolute discretion, terminate its obligations under this Agreement, by notice given to the Company and the Representatives (or, if the Terminating Agent is one of the Representatives, to the Company and the other Representatives), if (a) after the execution and delivery of this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or materially limited on or by, as the case may be, either of the New York Stock Exchange or the Toronto Stock Exchange, (ii) trading of any securities of or guaranteed by the Company shall have been suspended on any exchange or in any over-the-counter market, (iii) a general moratorium on commercial banking activities in New York shall have been declared by either Federal or New York State authorities or in Canada by the Canadian federal or provincial authorities, or there shall have occurred a material disruption in commercial banking or securities settlement or clearance services, in Canada or the United States, (iv) there shall have occurred, developed or come into effect any event, action, state, condition, or major financial occurrence of national or international consequence or any law or regulation, any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, that, in the judgment of that Terminating Agent is material and adverse to the financial markets in Canada or the United States or (v) there shall have occurred a Material Adverse Effect and (b) the occurrence of any of the events specified in clauses (a)(i) through (v) above makes it, in the judgment of that Terminating Agent impracticable to market the Securities on the terms and in the manner contemplated in the Prospectus, or to enforce contracts for the sale of the Securities. |
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The rights of termination contained in this Section 9 may be exercised by any of the Agents and are in addition to any other rights or remedies any of the Agents may have in respect of any default, act or failure to act or non-compliance by the Company in respect of any of the matters contemplated by this Agreement or otherwise. In the event of any such termination, there shall be no further liability on the part of the Terminating Agent to the Company or on the part of the Company to the Terminating Agent except in respect of any liability which may have arisen prior to or arise after such termination under Sections 8 and 10 (and, for clarity, the Terminating Agent will not be entitled to any portion of the fee payable by the Company pursuant to Section 3). A notice of termination given by an Agent under this Section 9 shall not be binding upon any other Agent.
Upon the delivery of a notice of termination by a Terminating Agent under this Section 9, the Company may, in its absolute discretion, proceed with the sale of Securities in accordance with the terms of this Agreement with the remaining Agents or terminate this Agreement.
| 10. | If this Agreement shall be terminated by the Agents, or any of them, because of any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company shall be unable to perform its obligations under this Agreement or any condition of the Agents’ obligations cannot be fulfilled, the Company agrees to reimburse the Agents or such Agents as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the fees and expenses of their counsel) reasonably incurred by such Agents in connection with this Agreement or the offering of Securities. The Agents or such Agents as have so terminated this Agreement will provide the Company with invoices in respect of any such out-of-pocket expenses to be reimbursed. |
| 11. | This Agreement shall enure to the benefit of and be binding upon the Company, and each Agent, and to the extent provided for in Section 8, each person referred to in such section, and in each case, their respective successors and assigns. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person, firm or corporation any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained. |
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| 12. | RBC is hereby authorized by each of the other Agents to act on its behalf and the Company shall be entitled to and shall act on any notice given in accordance with this Section 12 or agreement entered into by or on behalf of the Agents by RBC which represents and warrants that it has irrevocable authority to bind the Agents, except in respect of any consent to a settlement pursuant to Section 8, which consent shall be given by the Indemnified Person, or a notice of termination pursuant to Section 9, which notice may be given by any of the Agents. RBC shall consult with the other Agents concerning any matter in respect of which it acts as representative of the Agents. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication. Notices to the Agents shall be given on their behalf to: RBC Dominion Securities Inc., 200 Bay Street, 2nd Floor, North Tower, Toronto, Ontario, M5J 2W7 (email: Patrick.MacDonald@rbccm.com). Notices to the Company shall be given to it at 510 W. Georgia St., 23rd Floor, Vancouver, British Columbia V6B 0M3, Attention: Senior Vice-President and Treasurer (email: treasury@telus.com). |
| 13. | (a) In the event that any Agent that is a Covered Entity (as defined below) becomes subject to a proceeding under a U.S. Special Resolution Regime (as defined below), the transfer from such Agent of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any interest and obligation in or under this Agreement, were governed by the laws of the United States or a state of the United States. |
(b) In the event that any Agent that is a Covered Entity or a Covered Affiliate (as defined below) of any such Agent becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights (as defined below) under this Agreement that may be exercised against such Agent are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.
| (c) | As used in this Section: |
| (i) | “Covered Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k). |
| (ii) | “Covered Entity” means any of the following: |
| (A) | a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); |
| (B) | a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or |
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| (C) | a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). |
| (iii) | “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. |
| (iv) | “U.S. Special Resolution Regime” means each of (i) the U.S. Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder. |
| 14. | This Agreement may be executed in counterparts and delivered by facsimile or other electronically transmitted format, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. |
| 15. | This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario, without giving effect to the conflicts of laws provisions thereof. |
[Remainder of this page intentionally left blank]
| Very truly yours, | |||
| TELUS CORPORATION | |||
| By: | (signed) Doug French | ||
| Name: | Doug French | ||
| Title: | Executive Vice-President and Chief Financial Officer | ||
| By: | (signed) Andrea Wood | ||
| Name: | Andrea Wood | ||
| Title: | Executive Vice-President and Chief Legal and Governance Officer | ||
EXECUTION PAGE – AGENCY AGREEMENT
| Accepted: April 15, 2025. | ||
| RBC DOMINION SECURITIES INC. | ||
| By: | (signed) Patrick MacDonald | |
| Name: Patrick MacDonald | ||
| Title: Managing Director | ||
| SCOTIA CAPITAL INC. | ||
| By: | (signed) Michal Cegielski | |
| Name: Michal Cegielski | ||
| Title: Managing Director & Head – Global Debt Capital Markets | ||
| TD SECURITIES INC. | ||
| By: | (signed) Abeed Ramji | |
| Name: Abeed Ramji | ||
| Title: Managing Director - Head, Canadian Debt Capital Markets | ||
| BMO NESBITT BURNS INC. | ||
| By: | (signed) Kris Somers | |
| Name: Kris Somers | ||
| Title: Managing Director | ||
| CIBC WORLD MARKETS INC. | ||
| By: | (signed) Sean Gilbert | |
| Name: Sean Gilbert | ||
| Title: Managing Director | ||
EXECUTION PAGE – AGENCY AGREEMENT
| DESJARDINS SECURITIES INC. | ||
| By: | (signed) Michael Giansante | |
| Name: Michael Giansante | ||
| Title: Vice President & Director, Debt Capital Markets | ||
| J.P. MORGAN SECURITIES CANADA INC. | ||
| By: | (signed) Adeel Kheraj | |
| Name: Adeel Kheraj | ||
| Title: Executive Director | ||
| NATIONAL BANK FINANCIAL INC. | ||
| By: | (signed) John Carrique | |
| Name: John Carrique | ||
| Title: Managing Director | ||
| WELLS FARGO SECURITIES CANADA, LTD. | ||
| By: | (signed) Jamie McKeown | |
| Name: Jamie McKeown | ||
| Title: Executive Director | ||
| SMBC NIKKO SECURITIES CANADA, LTD. | ||
| By: | (signed) David Kee | |
| Name: David Kee | ||
| Title: CEO | ||
| ATB SECURITIES INC. | ||
| By: | (signed) Andrew Becker | |
| Name: Andrew Becker | ||
| Title: Managing Director | ||
EXECUTION PAGE – AGENCY AGREEMENT
SCHEDULE I
SERIES CAR NOTES
| Title of Securities: | 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes,Series CAR due July 21, 2055 (the “Series CAR Notes”). |
| Aggregate principal amount: | Cdn. $1,100,000,000 |
| Price to Public: | Cdn. $999.65 per Cdn. $1,000 principal amount of Series CAR Notes. |
| Indenture: |
Indenture dated as of May 22, 2001 between the Company and Computershare Trust Company of Canada (formerly Montreal Trust Company of Canada) as Trustee, as supplemented by the First Series Supplemental Indenture dated as of May 30, 2001, the Second Series Supplemental Indenture dated as of May 30, 2001, the Third Series Supplemental Indenture dated as of May 30, 2001, the Fourth Series Supplemental Indenture dated as of May 18, 2006, the Fifth Series Supplemental Indenture dated as of March 13, 2007, the Sixth Series Supplemental Indenture dated as of March 13, 2007, the Seventh Series Supplemental Indenture dated as of April 9, 2008, the Eighth Series Supplemental Indenture dated as of May 20, 2009, the Ninth Series Supplemental Indenture dated as of December 4, 2009, the Tenth Series Supplemental Indenture dated as of July 23, 2010, the Eleventh Series Supplemental Indenture dated as of May 25, 2011, the Twelfth Series Supplemental Indenture dated as of December 11, 2012, the Thirteenth Series Supplemental Indenture dated as of April 1, 2013, the Fourteenth Series Supplemental Indenture dated as of April 1, 2013, the Fifteenth Series Supplemental Indenture dated as of November 26, 2013, the Sixteenth Series Supplemental Indenture dated as of November 26, 2013, the Seventeenth Series Supplemental Indenture dated as of April 4, 2014, the Eighteenth Series Supplemental Indenture dated as of April 4, 2014, the Nineteenth Series Supplemental Indenture dated as of September 15, 2014, and the Twentieth Series Supplemental Indenture dated as of September 15, 2014, the Twenty-First Series Supplemental Indenture in respect of the Series CS Notes dated as of March 27, 2015, the Twenty-Second Series Supplemental Indenture in respect of the Series CT Notes dated as of March 27, 2015, the Twenty-Third Series Supplemental Indenture in respect of the Series CU Notes dated as of March 27, 2015, the Twenty-Fourth Series Supplemental Indenture in respect of the Series CV Notes dated as of December 8, 2015, the Twenty-Fifth Series Supplemental Indenture in respect of the issuance of additional Series CP Notes dated as of December 8, 2015, the Twenty-Sixth Series Supplemental Indenture in respect of the CW Notes dated as of March 6, 2017, the Twenty-Seventh Supplemental Indenture dated as of October 1, 2017, the Twenty-Eighth Series Supplemental Indenture in respect of the Series CX Notes dated as of March 1, 2018, the Twenty-Ninth Series Supplemental Indenture in respect of the issuance of additional Series CW Notes dated as of March 1, 2018, the Thirtieth Series Supplemental Indenture in respect of the Series CY Notes dated as of April 3, 2019, the Thirty-First Series Supplemental Indenture in respect of the Series CZ Notes dated as of July 2, 2019, the Thirty-Second Series Supplemental Indenture in respect of the Series CAA Notes dated as of December 16, 2019, the Thirty-Third Series Supplemental Indenture in respect of the Series CAB Notes dated as of December 16, 2019, the Thirty-Fourth Series Supplemental Indenture in respect of the issuance of additional Series CAB Notes dated as of May 29, 2020, the Thirty-Fifth Series Supplemental Indenture in respect of the Series CAC Notes dated as of May 29, 2020, the Thirty-Sixth Series Supplemental Indenture in respect of the Series CAD Notes dated as of October 5, 2020, the Thirty-Seventh Series Supplemental Indenture in respect of the Series CAE Notes dated as of April 5, 2021, the Thirty-Eighth Series Supplemental Indenture in respect of the Series CAF Notes dated June 28, 2021, the Thirty-Ninth Series Supplemental Indenture in respect of the Series CAG Notes dated September 13, 2022, the Fortieth Series Supplemental Indenture in respect of the Series CAH Notes dated September 13, 2022, the Forty-First Series Supplemental Indenture in respect of the Series CAI Notes dated September 13, 2022, the Forty-Second Series Supplemental Indenture in respect of the Series CAJ Notes dated March 28, 2023, the Forty-Third Supplemental Indenture dated June 15, 2023, the Forty- Fourth Series Supplemental Indenture in respect of the Series CAK Notes dated September 8, 2023, the Forty-Fifth Series Supplemental Indenture in respect of the Series CAL Notes dated September 8, 2023, the Forty-Sixth Series Supplemental Indenture in respect of the Series CAM Notes dated September 8, 2023 and the Forty-Seventh Supplemental Indenture dated January 2, 2024, the Forty- Eighth Series Supplemental Indenture in respect of the Series CAN Notes dated February 15, 2024, the Forty- Ninth Series Supplemental Indenture in respect of the Series CAO Notes dated February 15, 2024, the Fiftieth Series Supplemental Indenture in respect of the Series CAP Notes dated February 15, 2024 and the Fifty-First Series Supplemental Indenture in respect of the Series CAQ Notes dated August 13, 2024 as further supplemented by a Fifty-Second Series Supplemental Indenture to be dated as of April 21, 2025. |
| Maturity: | The Series CAR Notes will mature on July 21, 2055. |
| Interest Rate and Payment: | The Series CAR Notes will bear interest (i) from, and including, April 21, 2025, to, but excluding, July 21, 2030 (the “Series CAR First Reset Date”) at a rate of 6.25% per annum and thereafter (ii) from, and including, the Series CAR First Reset Date, and from every fifth anniversary of such date thereafter (each such date a “Series CAR Interest Reset Date”), with respect to each Series CAR Interest Reset Period (as defined in the Prospectus) to, but excluding, the next succeeding Series CAR Interest Reset Date, the date of maturity or the date of redemption, as the case may be, at a rate per annum equal to the Five Year Government of Canada Yield (as defined in the Prospectus) as of the most recent Series CAR Interest Reset Determination Date (as defined in the Prospectus) plus a spread of 3.482%, to be reset on each Series CAR Interest Reset Date; provided, that the interest rate during any Series CAR Interest Reset Period will not reset below 6.25% (which equals the initial interest rate on the Series CAR Notes). |
| Subject to the Company’s right to defer interest payments as described in the Prospectus, interest on the Series CAR Notes will be payable in arrears in equal semi-annual instalments (except the first interest payment) on January 21 and July 21 of each year, commencing on January 21, 2026. The first interest payment (long first coupon) on January 21, 2026 will be in an amount equal to $51,515,410.96. | |
| Optional Redemption Provisions: | The Series CAR Notes may be redeemed to the extent set forth in the Prospectus. |
| Change of Control Provisions: | None |
| Sinking Fund Provisions: | None |
| Global Note Depositary: | CDS Clearing and Depository Services Inc. |
| Closing Date and Time of Delivery: | April 21, 2025 at 9:00 a.m., Eastern time |
| Closing Location: | Remotely via electronic transmission of documentation (such as by use of .pdf) |
| SERIES CAS NOTES | |
| Title of Securities: | 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes,Series CAS due July 21, 2055 (the “Series CAS Notes”). |
| Aggregate principal amount: | Cdn. $500,000,000 |
| Price to Public: | Cdn. $999.59 per Cdn. $1,000 principal amount of Series CAS Notes. |
| Indenture: |
Indenture dated as of May 22, 2001 between the Company and Computershare Trust Company of Canada (formerly Montreal Trust Company of Canada) as Trustee, as supplemented by the First Series Supplemental Indenture dated as of May 30, 2001, the Second Series Supplemental Indenture dated as of May 30, 2001, the Third Series Supplemental Indenture dated as of May 30, 2001, the Fourth Series Supplemental Indenture dated as of May 18, 2006, the Fifth Series Supplemental Indenture dated as of March 13, 2007, the Sixth Series Supplemental Indenture dated as of March 13, 2007, the Seventh Series Supplemental Indenture dated as of April 9, 2008, the Eighth Series Supplemental Indenture dated as of May 20, 2009, the Ninth Series Supplemental Indenture dated as of December 4, 2009, the Tenth Series Supplemental Indenture dated as of July 23, 2010, the Eleventh Series Supplemental Indenture dated as of May 25, 2011, the Twelfth Series Supplemental Indenture dated as of December 11, 2012, the Thirteenth Series Supplemental Indenture dated as of April 1, 2013, the Fourteenth Series Supplemental Indenture dated as of April 1, 2013, the Fifteenth Series Supplemental Indenture dated as of November 26, 2013, the Sixteenth Series Supplemental Indenture dated as of November 26, 2013, the Seventeenth Series Supplemental Indenture dated as of April 4, 2014, the Eighteenth Series Supplemental Indenture dated as of April 4, 2014, the Nineteenth Series Supplemental Indenture dated as of September 15, 2014, and the Twentieth Series Supplemental Indenture dated as of September 15, 2014, the Twenty-First Series Supplemental Indenture in respect of the Series CS Notes dated as of March 27, 2015, the Twenty-Second Series Supplemental Indenture in respect of the Series CT Notes dated as of March 27, 2015, the Twenty-Third Series Supplemental Indenture in respect of the Series CU Notes dated as of March 27, 2015, the Twenty-Fourth Series Supplemental Indenture in respect of the Series CV Notes dated as of December 8, 2015, the Twenty-Fifth Series Supplemental Indenture in respect of the issuance of additional Series CP Notes dated as of December 8, 2015, the Twenty-Sixth Series Supplemental Indenture in respect of the CW Notes dated as of March 6, 2017, the Twenty-Seventh Supplemental Indenture dated as of October 1, 2017, the Twenty-Eighth Series Supplemental Indenture in respect of the Series CX Notes dated as of March 1, 2018, the Twenty-Ninth Series Supplemental Indenture in respect of the issuance of additional Series CW Notes dated as of March 1, 2018, the Thirtieth Series Supplemental Indenture in respect of the Series CY Notes dated as of April 3, 2019, the Thirty-First Series Supplemental Indenture in respect of the Series CZ Notes dated as of July 2, 2019, the Thirty-Second Series Supplemental Indenture in respect of the Series CAA Notes dated as of December 16, 2019, the Thirty-Third Series Supplemental Indenture in respect of the Series CAB Notes dated as of December 16, 2019, the Thirty-Fourth Series Supplemental Indenture in respect of the issuance of additional Series CAB Notes dated as of May 29, 2020, the Thirty-Fifth Series Supplemental Indenture in respect of the Series CAC Notes dated as of May 29, 2020, the Thirty-Sixth Series Supplemental Indenture in respect of the Series CAD Notes dated as of October 5, 2020, the Thirty-Seventh Series Supplemental Indenture in respect of the Series CAE Notes dated as of April 5, 2021, the Thirty-Eighth Series Supplemental Indenture in respect of the Series CAF Notes dated June 28, 2021, the Thirty-Ninth Series Supplemental Indenture in respect of the Series CAG Notes dated September 13, 2022, the Fortieth Series Supplemental Indenture in respect of the Series CAH Notes dated September 13, 2022, the Forty-First Series Supplemental Indenture in respect of the Series CAI Notes dated September 13, 2022, the Forty-Second Series Supplemental Indenture in respect of the Series CAJ Notes dated March 28, 2023, the Forty-Third Supplemental Indenture dated June 15, 2023, the Forty- Fourth Series Supplemental Indenture in respect of the Series CAK Notes dated September 8, 2023, the Forty-Fifth Series Supplemental Indenture in respect of the Series CAL Notes dated September 8, 2023, the Forty-Sixth Series Supplemental Indenture in respect of the Series CAM Notes dated September 8, 2023 and the Forty-Seventh Supplemental Indenture dated January 2, 2024, the Forty-Eighth Series Supplemental Indenture in respect of the Series CAN Notes dated February 15, 2024, the Forty-Ninth Series Supplemental Indenture in respect of the Series CAO Notes dated February 15, 2024, the Fiftieth Series Supplemental Indenture in respect of the Series CAP Notes dated February 15, 2024 and the Fifty-First Series Supplemental Indenture in respect of the Series CAQ Notes dated August 13, 2024 as further supplemented by a Fifty-Third Series Supplemental Indenture to be dated as of April 21, 2025. |
| Maturity: | The Series CAS Notes will mature on July 21, 2055. |
| Interest Rate and Payment: | The Series CAS Notes will bear interest (i) from, and including, April 21, 2025, to, but excluding, July 21, 2035 (the “Series CAS First Reset Date”) at a rate of 6.75% per annum and thereafter (ii) from, and including, the Series CAS First Reset Date, and from every fifth anniversary of such date thereafter (each such date a “Series CAS Interest Reset Date”), with respect to each Series CAS Interest Reset Period (as defined in the Prospectus) to, but excluding, the next succeeding Series CAS Interest Reset Date, the date of maturity or the date of redemption, as the case may be, at a rate per annum equal to the Five Year Government of Canada Yield (as defined in the Prospectus) as of the most recent Series CAS Interest Reset Determination Date (as defined in the Prospectus) plus a spread of 3.609%, to be reset on each Series CAS Interest Reset Date; provided, that the interest rate during any Series CAS Interest Reset Period will not reset below 6.75% (which equals the initial interest rate on the Series CAS Notes). |
| Subject to the Company’s right to defer interest payments as described in the Prospectus, interest on the Series CAS Notes will be payable in arrears in equal semi-annual instalments (except the first interest payment) on January 21 and July 21 of each year, commencing on January 21, 2026. The first interest payment (long first coupon) on January 21, 2026 will be in an amount equal to $25,289,383.56. | |
| Optional Redemption Provisions: | The Series CAS Notes may be redeemed to the extent set forth in the Prospectus. |
| Change of Control Provisions: | None |
| Sinking Fund Provisions: | None |
| Global Note Depositary: | CDS Clearing and Depository Services Inc. |
| Closing Date and Time of Delivery: | April 21, 2025 at 9:00 a.m., Eastern time |
| Closing Location: | Remotely via electronic transmission of documentation (such as by use of .pdf) |
SCHEDULE II
| Agent | Securities | |||
| RBC Dominion Securities Inc. | 17.00 | % | ||
| Scotia Capital Inc. | 17.00 | % | ||
| TD Securities Inc. | 17.00 | % | ||
| BMO Nesbitt Burns Inc. | 14.00 | % | ||
| CIBC World Markets Inc. | 14.00 | % | ||
| Desjardins Securities Inc. | 5.00 | % | ||
| J.P. Morgan Securities Canada Inc. | 4.00 | % | ||
| National Bank Financial Inc. | 4.00 | % | ||
| Wells Fargo Securities Canada, Ltd. | 4.00 | % | ||
| SMBC Nikko Securities Canada, Ltd. | 3.00 | % | ||
| ATB Securities Inc. | 1.00 | % | ||
ANNEX A-1
FORM OF OPINION OF
NORTON ROSE FULBRIGHT CANADA LLP
1. The Company is incorporated and existing under the Business Corporations Act (British Columbia) and has the corporate power and capacity to own, lease and operate its properties and conduct its business as described in the Prospectus.
2. The Company is qualified or registered to carry on business in each of the Provinces in Canada in which the location of its properties or the operation of its business makes such qualification or registration necessary, except where the failure to be so qualified or registered would not have a material adverse effect upon the business of the Company and its subsidiaries, taken as a whole.
3. TCI is incorporated and existing under the Business Corporations Act (British Columbia) and has the corporate power and capacity to own, lease and operate its properties and conduct its business as described in the Prospectus.
4. TCI is qualified or registered to carry on business in each of the Provinces in Canada.
5. The authorized share capital of TCI consists of an unlimited number of ordinary shares and an unlimited number of special redeemable subordinate preferred shares. All of the outstanding ordinary shares in the capital of TCI are registered in the name of the Company. All of the outstanding special redeemable subordinate preferred shares in the capital of TCI are registered in the name of TELUS Health & Payment Solutions GP Inc., which is a wholly owned subsidiary of the Company.
6. TELUS International is incorporated and existing under the Business Corporations Act (British Columbia) and has the corporate power and capacity to own, lease and operate its properties and conduct its business as described in the Prospectus.
7. There are no restrictions on the corporate power and capacity of the Company to enter into the Agency Agreement, the Base Indenture as supplemented by the Fifty-Second Series Supplemental Indenture or the Base Indenture as supplemented by the Fifty-Third Series Supplemental Indenture (together with the Base Indenture as supplemented by the Fifty-Second Series Supplemental Indenture, the “Indentures”) and carry out its obligations under the Agency Agreement or the Indentures. The Company has the corporate power and capacity to execute, issue and deliver the 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes Series CAR due July 21, 2055 (the “Series CAR Notes”) and the 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes Series CAR due July 21, 2055 (the “Series CAS Notes” and, together with the Series CAR Notes, the “Securities”). The execution and delivery of, and the performance by the Company of its obligations under, the Agency Agreement and the Indentures have been duly authorized by all necessary corporate action on the part of the Company.
8. Each of the Agency Agreement, the Base Indenture, the Fifty-Second Series Supplemental Indenture and the Fifty-Third Series Supplemental Indenture has been duly executed by the Company.
9. Each of the Agency Agreement, the Base Indenture, the Fifty-Second Series Supplemental Indenture and the Fifty-Third Series Supplemental Indenture has been duly delivered by the Company and constitutes a valid and binding obligation of the Company enforceable against the Company in accordance with its terms.
10. All corporate actions required to be taken by the Company under the Indentures relating to the authorization and issuance of the Securities have been complied with or satisfied. The Global Notes have been duly executed by the Company.
11. Assuming due certification of the Global Notes by the Trustee, the Global Notes have been duly delivered by or on behalf of the Company and the Securities constitute valid and binding obligations of the Company entitling the holders thereof to the benefits provided to such holders under the applicable Indenture.
12. Each Indenture and the form and terms of the Securities meet all legal requirements under the Business Corporations Act (Ontario) and, assuming due certification of the Global Notes by the Trustee, the provisions of such Act have been complied with by the Company in respect of the issuance, certification and delivery of the Securities.
13. Each Indenture and the form and terms of the Securities meet all legal requirements under the Business Corporations Act (British Columbia) and, assuming due certification of the Global Notes by the Trustee, the provisions of such Act have been complied with by the Company in respect of the issuance, certification and delivery of the Securities.
14. The execution, delivery and performance by the Company of its obligations under the Agency Agreement, the Indentures and the Securities do not and will not contravene or result in a breach of and do not and will not create a state of facts which, after notice or lapse of time or both, will result in a breach of, and do not and will not conflict with:
(a) any applicable law of the Province of Ontario or of the federal laws of Canada applicable therein;
(b) any resolution of the board of directors (or any committee thereof) or of the shareholders of the Company;
(c) any of the agreements or instruments set forth in a schedule to such opinion; or
(d) to the best of our knowledge, any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company or TCI,
and no consent, approval, authorization or order of, or qualification with, any governmental body or agency of the Province of Ontario or of the Government of Canada is required for the performance by the Company of its obligations under the Agency Agreement, the Indentures or the Securities except such as have been obtained.
15. The execution, delivery and performance by the Company of its obligations under the Agency Agreement, the Indentures and the Securities do not and will not contravene or result in a breach of and do not and will not create a state of facts which, after notice or lapse of time or both, will result in a breach of, and do not and will not conflict with:
(a) any applicable law of the Province of British Columbia; or
(b) any provision of the notice of articles or articles of the Company,
and no consent, approval, authorization or order of, or qualification with, any governmental body or agency of the Province of British Columbia is required for the performance by the Company of its obligations under the Agency Agreement, the Indentures or the Securities except such as have been obtained.
16. All necessary documents have been filed, all requisite proceedings have been taken and all necessary authorizations, approvals, permits and consents have been obtained by the Company under Canadian Securities Laws to permit the Securities to be offered and sold to the public in the Qualifying Provinces through persons and companies who are registered in an appropriate category of registration under Canadian Securities Laws and who have complied with the relevant provisions of such legislation.
17. The Company is a reporting issuer in each of the Qualifying Provinces and, where applicable, is not on the list of defaulting reporting issuers or noted in default on the list of reporting issuers maintained by the relevant Qualifying Authorities.
18. To the best of our knowledge, no order having the effect of ceasing or suspending the distribution of the Securities has been issued by any Qualifying Authority and no proceeding for that purpose has been initiated or threatened by any Qualifying Authority.
19. Subject to the limitations, assumptions and qualifications and relying upon the matters set out therein, the statements in the Shelf Prospectus under the heading “Description of Debt Securities” and the statements in the Prospectus Supplement under the heading “Details of the Offering”, insofar as they purport to constitute a summary of the terms of the Securities, are accurate and fair summaries of the matters described therein. Subject to the limitations, assumptions and qualifications therein, the statements in the Prospectus Supplement under the heading “Certain Canadian Federal Income Tax Considerations” is an accurate and fair summary of the principal Canadian federal income tax considerations generally applicable to an investment in the Securities and the statements in the Prospectus Supplement under the heading “Eligibility for Investment” are true and correct.
20. No stamp duty, registration or documentary taxes, duties or similar charges are payable under the laws of the Province of Ontario or the federal laws of Canada in connection with the creation, issuance, sale and delivery of the Securities or the authorization, execution, delivery and performance of the Agency Agreement and the Indentures.
21. No stamp duty, registration or documentary taxes, duties or similar charges are payable under the laws of the Province of British Columbia in connection with the creation, issuance, sale and delivery of the Securities or the authorization, execution, delivery and performance of the Agency Agreement and the Indentures.
22. Assuming (i) each purchaser of Securities in Québec has received a copy of the Shelf Prospectus and the Prospectus Supplement in the French language only or a copy of the Shelf Prospectus and the Prospectus Supplement in the French language and a copy of the Shelf Prospectus and the Prospectus Supplement in the English language; and (ii) all documents incorporated and deemed to be incorporated by reference into the Shelf Prospectus and the Prospectus Supplement have been translated in the French language and filed with the Autorité des marchés financiers, all requirements relating to the use of the French language in the Securities Act (Québec) will have been complied with in connection with the offer and sale of the Securities to purchasers in Québec. No opinion is expressed on whether the Shelf Prospectus, the Prospectus Supplement and forms of order and confirmation are in compliance with the Charter of the French Language (Québec).
ANNEX B-1
FORM OF REGULATORY OPINION
OF THE VICE PRESIDENT – TELECOM POLICY & CHIEF REGULATORY LEGAL COUNSEL OF THE COMPANY
1. The statements in the Company’s Annual Information Form dated February 13, 2025 under the headings “Canadian ownership and control requirements” and “Regulation”, and the statements in the Company’s management’s discussion and analysis for the fiscal year ended December 31, 2024 under the headings “Communications industry regulatory developments and proceedings” and “Regulatory matters”, as modified, supplemented or superseded to the extent that a statement contained therein is modified, supplemented or superseded by any document incorporated by reference in the Prospectus, insofar as such disclosure describes or summarizes matters of law, fairly summarizes such matters of law.
2. TCI and Olds Fibre Ltd. are the only telecommunications common carriers (as such term is used in the Telecommunications Act and in accordance with the Ownership Regulations) that are controlled by the Company, and each such company is:
(a) eligible to operate as a Canadian carrier in Canada, as defined under and in accordance with the Telecommunications Act and the Ownership Regulations;
(b) not in violation of the prohibition contained in subsection 16(4) of the Telecommunications Act against operating in Canada as a telecommunications common carrier unless it is eligible under Section 16 of the Telecommunications Act to do so; and
(c) not controlled by any persons that are not Canadian, in accordance with the meanings ascribed to the term “control” under the Telecommunications Act and the term “Canadian” under the Ownership Regulations.
3. Not less than 80% of the members of the board of directors of TCI and Olds Fibre Ltd. are individual Canadians, as defined under the Ownership Regulations, and Canadians, as defined under the Ownership Regulations, beneficially own, directly or indirectly, in the aggregate and otherwise than by way of security only, all of the issued and outstanding voting shares, as defined under the Ownership Regulations, of each such company.
4. TCI is the only radiocommunication service provider (as such term is used in the Radiocommunication Regulations) that is controlled by the Company, and TCI:
(a) is eligible to hold radio authorizations authorizing the operation in Canada of radio apparatus, as defined under and in accordance with the Radiocommunication Act and the Radiocommunication Regulations;
(b) is not in violation of the prohibition contained in subsection 4(1) of the Radiocommunication Act against operating radio apparatus in Canada, except under and in accordance with a radio authorization issued by the Minister of Innovation, Science and Industry;
(c) is not controlled by any persons that are not Canadian, in accordance with the meanings ascribed to the term “control” under the Telecommunications Act and the term “Canadian” under the Ownership Regulations; and
(d) is eligible to be issued a radio authorization under subsection 9(1) of the Radiocommunication Regulations.
5. TCI is Canadian, as defined under the Ownership Regulations.
6. The Company, in respect of its ownership of and control over TCI, is a carrier holding corporation and a qualified corporation, as defined under the Ownership Regulations.
7. Except as disclosed in the Prospectus, to the best of such counsel’s knowledge, there is no proposed or announced change in the Telecommunications Act, Radiocommunication Act, Ownership Regulations, Radiocommunication Regulations, Broadcasting Act or the CRTC Direction which would have a Material Adverse Effect.
8. TCI is the only holder of licenses to operate broadcasting undertakings (as such term is used in the Broadcasting Act), and it is:
(a) eligible to hold broadcasting licenses authorizing the operation in Canada of distribution and programming undertakings, as defined under and in accordance with the Broadcasting Act;
(b) not in violation of the prohibition contained in subsection 32(1) of the Broadcasting Act;
and
(c) not a non-Canadian (as that term is defined in the CRTC Direction).
ANNEX B-2
FORM OF REGULATORY CERTIFICATE
OF THE VICE PRESIDENT – TELECOM POLICY & CHIEF REGULATORY LEGAL COUNSEL OF THE COMPANY
1. To the best of such counsel’s knowledge, there are no legal or governmental investigations or other proceedings pending or threatened before any court or before or by any federal, provincial, state, municipal or other governmental or public department, commission, board, agency or body, domestic or foreign (including, without limitation, proceedings, inquiries or investigations of Innovation, Science and Economic Development Canada, Canadian Heritage, the CRTC or the Bureau, or arising under the Telecommunications Act, the Radiocommunication Act, the Broadcasting Act or the Competition Act) to which the Company or TCI is a party or to which any of the properties or assets of the Company or TCI is subject that are required to be described in the Prospectus, that are not so described as required or any statutes, including any statutes relating to the regulation of the Canadian telecommunications, radiocommunications and broadcasting industries (including for this purpose the orders, rules, regulations, directives, decisions, notices and policies promulgated pursuant to any applicable statutes or regulations specifically relating to the regulation of the Canadian telecommunications, radiocommunications and broadcasting industries and the orders, rules, regulations, directives, decisions, notices and policies promulgated thereunder), regulations, contracts or other documents that are required to be described in the Prospectus that are not described as required.
2. To the best of such counsel’s knowledge, each of the Company and its subsidiaries owns, possesses or has obtained all licenses, permits, certificates, consents, orders, approvals, waivers, registrations, and other authorizations from, and has made all declarations and filings with, all federal, provincial and other governmental authorities, all self-regulatory organizations and all courts and other tribunals, necessary to own or lease, as the case may be, and to operate its properties and to carry on its business as conducted as of the date hereof except where any failure to possess or obtain any such licenses, permits or other documents described in this paragraph or to make any such declaration or filing, or to fulfill any condition to an authorization would not, singly or in the aggregate, have a Material Adverse Effect, and neither the Company nor TCI has received any actual notice of any proceeding relating to revocation or modification of any such license, permit, certificate, consent, order, waiver, registration, approval or other authorization, except as described in the Prospectus or except where any revocation or modification would not, singly or in the aggregate, have a Material Adverse Effect; and each of the Company and TCI is in compliance with all laws and regulations relating to the conduct of its business as conducted as of the date hereof except where any non-compliance would not, singly or in the aggregate, have a Material Adverse Effect.
3. To the best of such counsel’s knowledge, neither the Company nor TCI is in violation of, or in default in any respect under, any judgment, decree, decision, order, writ, law, statute, rule or regulation rendered or enacted in Canada respecting telecommunications and the regulation within Canada of telecommunications common carriers, as defined in the Telecommunications Act, respecting radiocommunication and the operation within Canada of radio apparatus, as defined in the Radiocommunication Act or respecting broadcasting and the regulation within Canada of broadcasting undertakings, as defined in the Broadcasting Act, applicable to the Company or its subsidiaries, or any interpretation or policy relating thereto that is applicable to the Company or its subsidiaries except where the consequence of such violations or defaults would not have a Material Adverse Effect; the conduct of the Company’s and its subsidiaries’ businesses in the manner and to the extent currently conducted and proposed to be conducted, as described in the Prospectus, is in accordance with all material conditions and/or provisions of the Licenses and the Communications Statutes except where the consequence of any non-compliance would not, singly or in the aggregate, have a Material Adverse Effect; and no event has occurred which permits, or with notice or lapse of time or both, would permit the revocation or termination of any of the Licenses or which might result in any other material impairment of the rights of the Company and TCI therein or in any material violation of the Communications Statutes except where any revocation or modification would not, singly or in the aggregate, have a Material Adverse Effect.
4. To the best of such counsel’s knowledge, when required, the Company and TCI have timely filed all renewal applications with respect to all Licenses held by any of them, except where the failure so to file would not result in a Material Adverse Effect; no protests or competing applications have been filed with respect to such renewal applications and nothing has come to the Company’s attention that would lead it to conclude that such renewal applications will not be granted by the appropriate regulatory agency or body in the ordinary course or that its Licenses will be terminated, except where the consequence of such applications not being granted or termination of Licenses would not, singly or in the aggregate, have a Material Adverse Effect; and the Company and its subsidiaries are authorized under the Communications Statutes and the rules and regulations promulgated thereunder to continue to provide the services which are the subject of such renewal applications during the pendency thereof.
Exhibit 99.2
 |
News Release |
April 15, 2025
TELUS ANNOUNCES INAUGURAL JUNIOR SUBORDINATED NOTE OFFERING
Base shelf prospectus is accessible, and prospectus supplement will be accessible within two business days, through SEDAR+
6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055
6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055
VANCOUVER, B.C. - TELUS announced today it has priced $1.6 billion of fixed- to-fixed rate junior subordinated notes in two series, each with a 30.25-year maturity. The notes are offered through a syndicate of agents led by RBC Dominion Securities Inc., Scotia Capital Inc. and TD Securities Inc. Closing of the offering is expected to occur on or about April 21, 2025.
The 6.25% fixed-to- fixed rate junior subordinated notes, Series CAR, were priced at $99.965 per $100 principal amount for an initial effective yield of 6.25% per annum until July 21, 2030, and will mature on July 21, 2055. The 6.25% fixed-to-fixed rate junior subordinated notes, Series CAR will initially bear interest at a rate of 6.25% per annum and reset every five years starting July 21, 2030 to the prevailing five-year Government of Canada rate plus 3.482%, provided that the interest rate during any five-year interest period will not reset below 6.25%.
The 6.75% fixed-to- fixed rate junior subordinated notes, Series CAS, were priced at $99.959 per $100 principal amount for an initial effective yield of 6.75% per annum until July 21, 2035, and will mature on July 21, 2055. The 6.75% fixed-to-fixed rate junior subordinated notes, Series CAS will initially bear interest at a rate of 6.75% per annum and reset every five years starting July 21, 2035 to the prevailing five-year Government of Canada rate plus 3.609%, provided that the interest rate during any five-year interest period will not reset below 6.75%.
The net proceeds will be used for the repayment of outstanding indebtedness, including the repayment of commercial paper (incurred for general working capital purposes), the reduction of cash amounts outstanding under the receivables trust (incurred for general working capital purposes), the repayment of TELUS Corporation credit facility amounts outstanding, and for other general corporate purposes.
TELUS has been advised that credit rating agencies that have rated these notes have assigned 50% equity credit to the notes.
This media release does not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities being offered have not been approved or disapproved by any Canadian securities regulatory authority, nor has any authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The notes have not been registered under the U.S. Securities Act of 1933, as amended, and no notes are being offered in the United States or to or for the account or benefit of any U.S. person.
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The notes are being offered pursuant to a prospectus supplement to the short form base shelf prospectus of TELUS dated August 2, 2024. The prospectus supplement and the corresponding short form base shelf prospectus contain important detailed information about the notes. Access to the prospectus supplement and the base shelf prospectus, and any amendments to the thereto, are provided in accordance with securities legislation relating to the procedures for providing access to such documents. An electronic or paper copy of the prospectus supplement and corresponding short form base shelf prospectus relating to the offering of notes may be obtained, without charge, from the Chief Legal and Governance Officer of TELUS at 510 W. Georgia St., 23rd Floor, Vancouver, British Columbia V6B 0M3 (telephone 604-695-6420) or from RBC Dominion Securities Inc. by phone at 416-842-6311 or email at TorontoSyndicate@rbccm.com, Scotia Capital Inc. by phone at 416-863-7438 or email at syndicate.toronto@scotiabank.com or TD Securities Inc. by phone at 416-982-2243 or email at TDCAN-Syndicate@tdsecurities.com by providing an email address or mailing address, as applicable. Copies of these documents will be accessible electronically within two business days of the date hereof on the System for Electronic Data Analysis and Retrieval+ (“SEDAR+”) of the Canadian Securities Administrators, at www.sedarplus.ca. Investors should read the short form base shelf prospectus and prospectus supplement before making an investment decision.
Forward-Looking Statements
This news release contains statements about future events pertaining to the offering, including the anticipated closing date of the offering and the intended use of the net proceeds of the offering. By their nature, forward-looking statements require us to make assumptions and predictions and are subject to inherent risks and uncertainties including risks associated with capital and debt markets. There is significant risk that the forward-looking statements will not prove to be accurate. The timing and closing of the above-mentioned offering are subject to customary closing conditions and other risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from those described in the forward- looking statements. Accordingly, this news release is subject to the disclaimer and the qualifications and risk factors as set out in our 2024 annual management’s discussion and analysis and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR+ at sedarplus.ca) and in the United States (on EDGAR at sec.gov). The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements.
About TELUS
TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company, generating over $20 billion in annual revenue with more than 20 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. Our TELUS Health business is enhancing 76 million lives worldwide through innovative preventive medicine and well-being technologies. Our TELUS Agriculture & Consumer Goods business utilizes digital technologies and data insights to optimize the connection between producers and consumers. Guided by our enduring 'give where we live' philosophy, TELUS, our team members and retirees have contributed $1.8 billion in cash, in-kind contributions, time and programs including 2.4 million days of service since 2000, earning us the distinction of the world’s most giving company. For more information, please visit telus.com or follow @TELUSNews on X and @Darren_Entwistle on Instagram.
Investor Relations
Ian McMillan
ir@telus.com
Media Relations
Steve Beisswanger
Steve.Beisswanger@telus.com
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Exhibit 99.3
TELUS CORPORATION
as Issuer
and
COMPUTERSHARE TRUST COMPANY OF CANADA
as Indenture Trustee
FIFTY-SECOND SERIES SUPPLEMENT
Dated as of April 21, 2025
Supplementing the Trust Indenture dated as of May 22, 2001
between TELUS Corporation, as Issuer and
Computershare Trust Company of Canada, as Indenture Trustee,
and providing for the issue of
6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055
in the aggregate principal amount of $1,100,000,000
TABLE OF CONTENTS
| Article One Interpretation | 1 |
| 1.01 | To be Read with Indenture; Governing Law | 1 | |
| 1.02 | Definitions | 1 | |
| 1.03 | Conflict Between Series Supplement and Indenture | 5 | |
| 1.04 | Interpretation Provisions in Indenture | 5 | |
| 1.05 | Exhibits | 5 |
| Article Two Debt Securities | 5 |
| 2.01 | Creation and Designation | 5 | |
| 2.02 | Limitation on Aggregate Principal Amount | 5 | |
| 2.03 | Currency | 6 | |
| 2.04 | Denominations | 6 | |
| 2.05 | Date and Stated Maturity | 6 | |
| 2.06 | Interest | 6 | |
| 2.07 | Redemption and Purchase | 7 | |
| 2.08 | Sinking Fund | 7 | |
| 2.09 | Defeasance | 8 | |
| 2.10 | Form and Certification | 8 | |
| 2.11 | Identification | 8 | |
| 2.12 | Calculation Agent | 8 | |
| 2.13 | Non-Business Days | 9 |
| Article Three Deferral Right and Dividend Stopper Undertaking | 9 |
| 3.01 | Deferral Right | 9 | |
| 3.02 | Dividend Stopper Undertaking | 9 |
| Article Four Covenants and Representations and Warranties With Respect To The Notes | 9 |
| 4.01 | Covenants and Representations and Warranties in the Base Indenture | 9 | |
| 4.02 | Covenants Applicable to the Notes | 10 | |
| 4.03 | Compliance Certificate | 10 | |
| 4.04 | Financial Statements | 10 | |
| 4.05 | Agents’ Fees and Expenses | 10 | |
| 4.06 | Indenture Trustee May Perform Covenants | 10 |
| Article Five Subordination Of Notes | 11 |
| 5.01 | Notes Subordinated to Senior Indebtedness | 11 | |
| 5.02 | Disputes with Holder of Certain Senior Indebtedness | 12 | |
| 5.03 | Subrogation | 12 | |
| 5.04 | Obligation of Issuer Unconditional | 12 |
| 5.05 | Effectuation of Subordination by Indenture Trustee; Waiver of Conflicts | 13 | |
| 5.06 | Knowledge of Indenture Trustee | 13 | |
| 5.07 | Indenture Trustee May Hold Senior Indebtedness | 13 | |
| 5.08 | Rights of Holders of Senior Indebtedness Not Impaired | 14 | |
| 5.09 | Article Applicable to Paying Agents | 14 | |
| 5.10 | Indenture Trustee; Compensation Not Prejudiced | 14 |
| Article Six Events Of Default and Remedies | 14 |
| 6.01 | Events of Default | 14 | |
| 6.02 | Acceleration of Maturity; Rescission and Annulment | 15 |
| Article Seven Miscellaneous Provisions | 15 |
| 7.01 | Confirmation of Indenture | 15 | |
| 7.02 | Acceptance of Trusts | 16 | |
| 7.03 | Counterparts and Formal Date | 16 | |
| Exhibit A To Fifty-Second Series Supplement | A-1 | ||
THIS IS THE FIFTY-SECOND SERIES SUPPLEMENT dated as of April 21, 2025
BETWEEN:
TELUS CORPORATION, in its capacity as Issuer
- and-
COMPUTERSHARE TRUST COMPANY OF CANADA,
a trust company under the laws of Canada, in its capacity as Indenture Trustee
WHEREAS the Issuer and the Indenture Trustee have entered into a trust indenture dated as of May 22, 2001 (the “Base Indenture”), as amended and supplemented by the forty-seventh supplement to the Base Indenture, dated January 2, 2024 between the Issuer and the Indenture Trustee (together, with the Base Indenture, the “Indenture” and the Indenture as further amended and supplemented by this Series Supplement , the “Supplemented Indenture”);
AND WHEREAS pursuant to Section 2.02 of the Base Indenture, the Issuer may from time to time create and issue one or more new Series of Debt Securities, subject to the satisfaction of certain conditions set forth in the Indenture and in the related Series Supplement;
AND WHEREAS the Principal Terms of any new Series of Debt Securities are to be set forth in a Series Supplement, which amends and supplements the Indenture in relation to such Series;
AND WHEREAS this Series Supplement relates to the Series of Debt Securities to be designated as 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055 and the Issuer and the Indenture Trustee are entering into this Series Supplement in order to establish the Principal Terms of such Series and to provide for the issuance of such Series.
NOW THEREFORE THIS SERIES SUPPLEMENT WITNESSES and it is hereby covenanted, agreed and declared as follows:
ARTICLE
ONE
INTERPRETATION
| 1.01 | To be Read with Indenture; Governing Law |
This Series Supplement is supplemental to the Indenture, and the Indenture and this Series Supplement shall hereafter be read together and shall have effect, so far as practicable, with respect to the 6.25% Fixed- to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055 as if all the provisions of the Indenture and this Series Supplement were contained in one instrument, which instrument shall be governed by and construed in accordance with the laws of the Province of Ontario, and the federal laws of Canada applicable in such Province. The parties hereto expressly request and require that this document be drawn up in English. Les parties aux présentes conviennent et exigent que cette entente et tous les documents qui s’y rattachent soient rédigés en anglais.
| 1.02 | Definitions |
| (1) | All capitalized terms used but not defined in this Series Supplement shall have the meanings specified in the Indenture except that for the purpose, and only for the purpose, of this Series Supplement and the Notes: |
| (a) | the definition of the term “Business Day” is amended to read as follows: |
“Business Day” shall mean a day other than a Saturday, Sunday or other day on which banking institutions in the Province of Ontario are authorized or required by law to close.
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| (b) | the definition of the term “Event of Default” is amended to read as follows: |
“Event of Default” shall have the meaning specified in Section 6.01 of this Series Supplement.
| (c) | the definition of “Indebtedness” as such term is defined in the Indenture is deleted. |
| (2) | In addition, the following terms shall have the following meanings: |
“Administrative Action” shall mean, with respect to a Tax Event (as defined herein), any judicial decision, administrative pronouncement, published or private ruling, regulatory procedure, rule, notice, announcement, assessment or reassessment (including any notice or announcement of intent to adopt or issue such decision, pronouncement, ruling, procedure, rule, notice, announcement, assessment or reassessment).
“Bankruptcy Law” shall mean the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) or any other similar applicable Canadian federal, provincial or territorial law or similar applicable law of any other jurisdiction relating to bankruptcy, insolvency, winding up, liquidation, reorganization or relief of debtors.
“Bankruptcy Order” shall mean any court order for liquidation, winding up, dissolution or reorganization, or appointing a Custodian of a debtor or of all or any substantial part of a debtor’s property, or providing for the staying, arrangement, adjustment or composition of indebtedness or other relief of a debtor.
“Base Indenture” shall have the meaning specified in the recitals of this Series Supplement.
“Bloomberg Screen GCAN5YR Page” shall mean the display designated as page “GCAN5YR<INDEX>” on the Bloomberg Financial L.P. service (or such other page as may replace the GCAN5YR page on that service for purposes of displaying Government of Canada bond yields).
“Calculation Agent” shall mean any Person, which may be the Issuer or any of the Issuer’s Affiliates, appointed by the Issuer from time to time to act as calculation agent with respect to the Notes.
“Common Shares” means the common shares in the capital of the Issuer.
“Custodian” shall mean any receiver, interim receiver, receiver and manager, trustee in bankruptcy, liquidator, sequestrator or similar official under any Bankruptcy Law or any other Person with like powers.
“DBRS” shall mean DBRS Limited.
“Deferral Period” shall have the meaning specified in Section 3.01 of this Series Supplement.
“Deferral Right” shall have the meaning specified in Section 2.06 of this Series Supplement.
“Deferred Interest” shall have the meaning specified in Section 3.01 of this Series Supplement.
“Dividend Restricted Shares” shall mean the Common Shares and any preferred shares in the capital of the Issuer.
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“First Reset Date” shall mean July 21, 2030.
“Five Year Government of Canada Yield” shall mean, as at any Interest Reset Determination Date for a Interest Reset Period, the bid yield to maturity on such date (assuming semi-annual compounding) of a Canadian dollar denominated non-callable Government of Canada bond with a term to maturity of five years as quoted as of 10:00 a.m. (Toronto time) on such date and which appears on the Bloomberg Screen GCAN5YR Page on such date; provided that, if such rate does not appear on the Bloomberg Screen GCAN5YR Page on such date, “Five Year Government of Canada Yield” means the average of the yields determined by two registered Canadian investment dealers (each of which is a member of the Canadian Investment Regulatory Organization), selected by the Issuer, as being the yield to maturity (assuming semi-annual compounding) on such date at or about 10:00 a.m. (Toronto time) which a Canadian dollar denominated non-callable Government of Canada bond would carry if issued in Canadian dollars at 100% of its principal amount on such date with a term to maturity of five years.
“Indenture” shall have the meaning specified in the recitals of this Series Supplement.
“Interest Payment Date” shall mean January 21 and July 21 of each year during which any Notes are outstanding until Maturity.
“Interest Period” shall mean the period commencing on the later of the date of issuance of the Notes or the last Interest Payment Date to, but excluding, the next Interest Payment Date.
“Interest Reset Date” shall mean the First Reset Date and each date falling on the five- year anniversary of the preceding Interest Reset Date.
“Interest Reset Determination Date” shall mean, for any Interest Reset Period, the day falling two Business Days prior to the applicable Interest Reset Date for such Interest Reset Period.
“Interest Reset Period” shall mean the period from, and including, the First Reset Date to, but excluding, the next succeeding Interest Reset Date, and thereafter each period from, and including, each Interest Reset Date to, but excluding, the next succeeding Interest Reset Date, the Stated Maturity, or the Redemption Date, as the case may be.
“Moody’s” shall mean Moody’s Investors Service Inc.
“Notes” shall have the meaning specified in Section 2.01 of this Series Supplement.
“Parity Indebtedness” shall mean any class or series of the Issuer’s debt securities or any other indebtedness of the Issuer for borrowed money outstanding on the date hereof or hereafter created which ranks on a parity with the Notes as to distributions upon liquidation, dissolution or winding-up.
“Permitted Purchase” shall mean a redemption, purchase or other retirement for value of any Dividend Restricted Shares or Parity Indebtedness (i) pursuant to any purchase obligation, sinking fund, retraction privilege or mandatory redemption provisions attaching to any series of Dividend Restricted Shares or (ii) with respect to Dividend Restricted Shares, (a) out of the net cash proceeds of a substantially concurrent issuance and sale of, or made in exchange for (including by using), Dividend Restricted Shares or a substantially concurrent net cash capital contribution received by the Issuer (other than from a subsidiary of the Issuer), (b) deemed to occur upon the exercise or exchange of options, warrants or other convertible or exchangeable securities, to the extent such Dividend Restricted Shares represent all or a portion of the exercise, conversion or exchange price thereof, together with any withholding to pay for the taxes payable in connection therewith or (c) cash payments in lieu of issuing fractional shares in connection with share dividends, splits or business combinations or the exercise of warrants, options or other securities convertible into or exchangeable for Dividend Restricted Shares of the Issuer.
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“Rating Event” shall mean, with respect to the Notes, any Specified Rating Agency amends, clarifies or changes the methodology or criteria it uses to assign equity credit to securities such as the Notes, which amendment, clarification or change results in (i) the shortening of the length of time the Notes are assigned a particular level of equity credit by that Specified Rating Agency as compared to the length of time they would have been assigned that level of equity credit by that Specified Rating Agency or its predecessor on the date of issuance, or (ii) the lowering of the equity credit assigned to the Notes by that Specified Rating Agency compared to the equity credit assigned by that Specified Rating Agency or its predecessor on the date of issuance.
“Redemption Date” means the date fixed for redemption of the Notes as specified in notice(s) of redemption delivered pursuant to Section 2.07 of this Series Supplement.
“S&P” shall mean Standard & Poor’s Rating Services, a business unit of S&P Global Canada Corp.
“Specified Rating Agency” shall mean each of Moody’s, S&P and DBRS or any other designated rating organization (as defined in National Instrument 44-101 – Short Form Prospectus Distributions), as applicable, that then publishes a rating for the Issuer and, in each case, their respective successors.
“Senior Creditor” shall mean a holder or holders of Senior Indebtedness and includes any representative or representatives or trustee or trustees of any such holder and such other lenders providing advances to the Issuer pursuant to Senior Indebtedness.
“Senior Indebtedness” shall mean all present and future indebtedness, liabilities and other obligations (other than Subordinated Indebtedness) of, or guaranteed or assumed by, the Issuer for borrowed money or evidenced by bonds, debentures or notes or obligations of the Issuer for or in respect of bankers’ acceptances (including the face amount thereof), letters of credit and letters of guarantee (including all reimbursement obligations in respect of each of the foregoing) or other similar instruments, and amendments, renewals, extensions, modifications and refunding of any such indebtedness, liabilities or other obligations including, without limitation, the senior notes issued by the Issuer.
“Subordinated Indebtedness” shall mean the Notes or any other obligations that are, pursuant to the terms of the instrument or agreement creating or evidencing those obligations, expressly designated as being (i) subordinate in right of payment to Senior Indebtedness or (ii) pari passu with, or subordinate to, the Notes in right of payment.
“Stated Maturity” shall have the meaning specified in Section 2.05 of this Series Supplement.
“Supplemented Indenture” shall have the meaning specified in the recitals of this Series Supplement.
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“Tax Event” shall mean, with respect to the Notes, the Issuer has received an opinion of counsel of a law firm that is nationally recognized in Canada or the U.S. and experienced in such matters (who may be counsel to the Issuer) to the effect that, as a result of (i) any amendment to, clarification of, or change (including any announced prospective amendment, clarification or change) in the laws, or any regulations or rulings thereunder, or any application or interpretation thereof, of Canada or the U.S. or any political subdivision or authority or agency thereof or therein having power to tax or any applicable tax treaty, (ii) any Administrative Action, or (iii) any amendment to, clarification of, or change in, the official position with respect to or the interpretation of any Administrative Action or any interpretation or pronouncement that provides for a position with respect to an Administrative Action that differs from the theretofore generally accepted position, in each of case (i), (ii) or (iii), by any legislative body, court, governmental authority or agency, regulatory body or taxing authority irrespective of the manner in which such amendment, clarification, change, Administrative Action, interpretation or pronouncement is made known, which amendment, clarification, change or Administrative Action is effective or which interpretation, pronouncement or Administrative Action is announced on or after the date of issuance of the Notes, there is a more than insubstantial risk (assuming any proposed or announced amendment, clarification, change, interpretation, pronouncement or Administrative Action is effective and applicable) that the Issuer is, or may be subject to more than a de minimis amount of additional taxes, duties or other governmental changes or civil liabilities because the treatment of any of its items of income, taxable income, expense, taxable capital or taxable paid-up capital with respect to the Notes (including the treatment or deductibility by the Issuer of interest on the Notes), as or as would be reflected in any tax return or form filed, to be filed, or that otherwise would have been filed, will not be respected by a taxing authority.
| 1.03 | Conflict Between Series Supplement and Indenture |
If any term or provision contained in this Series Supplement shall conflict or be inconsistent with any term or provision of the Indenture, the terms and provisions of this Series Supplement shall govern; provided, however, that the terms and provisions of this Series Supplement may modify or amend the terms of the Indenture solely as applied to the Notes.
| 1.04 | Interpretation Provisions in Indenture |
This Series Supplement shall, unless the context otherwise requires, be subject to the interpretation provisions contained in Article One of the Base Indenture.
| 1.05 | Exhibits |
Exhibit A to this Series Supplement forms part of this Series Supplement.
ARTICLE
TWO
DEBT SECURITIES
| 2.01 | Creation and Designation |
The Issuer is hereby authorized to issue under the Indenture a Series of Debt Securities designated “6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055” (the “Notes”) having the terms set forth in this Article Two and Article Three.
| 2.02 | Limitation on Aggregate Principal Amount |
The aggregate principal amount of the Notes that may be issued (except for Notes issued upon registration of transfer of, or in exchange for, or in lieu of, other Notes) shall be initially limited to $1,100,000,000. The Issuer may, from time to time, without the consent of any existing Holders of the Notes, create and issue additional Notes hereunder in such additional amounts as the Issuer may determine having the same terms and conditions as the Notes in all respects, except for such variations to such terms and conditions as may be required, in the reasonable and good faith opinion of the Issuer, to reflect the different issue dates of such additional Notes and the then existing Notes and the intention that all such additional Notes and then existing Notes be fungible for trading purposes from the issue date of such additional Notes (which variations may include, among other things, a different issue date, a different issue price, a different interest commencement date, a different first interest payment date, a different initial interest period, and a different interest payment calculation for the initial interest period). Additional Notes so created and issued will be consolidated with and form a single Series with the then existing Notes and, if the Issuer acting reasonably and in good faith determines that it is advisable or advantageous to do so, the Issuer may accept such additional Notes and then existing Notes (including any such Notes in global form held by a Depositary) in exchange for consolidated and restated replacement Notes reflecting the terms and conditions of such additional Notes and then existing Notes.
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| 2.03 | Currency |
The Notes shall be denominated in, and all principal of, and premium, interest and other amounts on the Notes shall be payable in, Canadian Dollars. Unless expressly provided to the contrary in this Series Supplement, all amounts expressed in this Series Supplement and in each Note in terms of money refer to Canadian Dollars.
| 2.04 | Denominations |
The Notes shall be denominated in integral multiples of $1,000.
| 2.05 | Date and Stated Maturity |
The Series Issuance Date for the Notes shall be April 21, 2025 and the entire principal amount of the Notes shall become due and payable, together with any accrued and unpaid interest on the Notes, on July 21, 2055 (such date being the “Stated Maturity” of the outstanding principal amount of the Notes).
| 2.06 | Interest |
| (1) | Interest shall accrue on the aggregate unpaid principal amount of each Note, together, to the extent permitted by Applicable Law and subject to Article Three, with interest on overdue interest not paid on an Interest Payment Date for the Notes, as well after as before default and judgment, from, and including, April 21, 2025 to, but excluding, the First Reset Date, at a rate of interest equal to 6.25% per annum. Thereafter, interest shall accrue from, and including, each Interest Reset Date with respect to each Interest Reset Period to, but excluding, the next succeeding Interest Reset Date, the Stated Maturity or the Redemption Date, as the case may be, at a rate per annum equal to the Five Year Government of Canada Yield as of the most recent Interest Reset Determination Date plus a spread of 3.482%, to be reset on each Interest Reset Date; provided, that the interest rate will not reset below 6.25%. Subject to the Issuer’s right to defer interest payments as provided in Article Three of this Series Supplement (the “Deferral Right”), (i) interest that accrues on a Note for the period from April 21, 2025 to but excluding January 21, 2026 shall be payable on the first Interest Payment Date (namely, January 21, 2026) in an aggregate amount equal to $51,515,410.96, (ii) interest that accrues on a Note for the period from and including January 21, 2026, subject to any variation to the terms and conditions of the initial interest payment under any additional Notes and subject to the resetting of the per annum rate of interest on each Interest Reset Date as specified above, shall be payable in arrears in equal semi-annual instalments on each Interest Payment Date for the Notes and all accrued and unpaid interest on the Notes shall be paid on the Maturity of the Notes. |
| (2) | Interest on the Notes for any period (other than a full Interest Period) will be computed on the basis of the actual number of days in such period over a year of 365 days. |
| (3) | Subject to the Deferral Right, the Interest Payment Dates for the Notes shall be January 21 and July 21 in each year beginning January 21, 2026. |
| (4) | The Regular Interest Record Dates for the Notes shall be January 6 (with respect to the January 21 Interest Payment Date) and July 6 (with respect to the July 21 Interest Payment Date) in each year. |
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| 2.07 | Redemption and Purchase |
| (1) | The Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem the Notes in whole or at any time in part from time to time, (i) on any day in the period commencing on and including the date that is 90 days prior to the First Reset Date and ending on and including the First Reset Date, and (ii) after the First Reset Date, on any Interest Payment Date, in each case, at a Redemption Price equal to 100% of the principal amount of the Notes redeemed together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date. For the avoidance of doubt, if there is a Tax Event or a Rating Event on or after the date that is 90 days prior to the First Reset Date, the Issuer may optionally redeem the Notes in accordance with the optional redemption right in this Section 2.07(1) without regard to the additional rights of redemption provided for such Tax Event or Rating Event in Section 2.07(2) or Section 2.07(3), as applicable. |
| (2) | In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem the Notes in whole, but not in part, at any time within 90 days following the occurrence of a Tax Event at a Redemption Price equal to 100% of the outstanding principal amount of the Notes together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date. |
| (3) | In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem the Notes in whole, but not in part at any time within 90 days following the occurrence of a Rating Event at a Redemption Price equal to 102% of the outstanding principal amount of the Notes together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date. |
| (4) | Notice of redemption given to the Holders of the Notes pursuant to the Indenture and this Series Supplement may, at the option of the Issuer, be subject to one or more conditions precedent, including but not limited to, completion of an equity or other securities offering, an incurrence of indebtedness or other financing or any other corporate transaction or event and, in such case, such notice of redemption shall specify, in addition to the requirements of Section 3.01(c) of the Base Indenture, the details and terms of any event (e.g., a securities offering, financing or other corporate transaction) on which such redemption is conditional and, if applicable, state that, in the Issuer’s discretion, such redemption may not occur and such notice may be revoked in the event that any or all such conditions shall not have been satisfied or waived by the applicable Redemption Date. Notice of any redemption in respect thereof may, at the Issuer’s discretion, be given prior to the completion of one or more of the transactions or events upon which the redemption is conditioned and such redemption may be partial as a result of only some of the conditions being satisfied. Notwithstanding Section 3.01(e) and Section 3.01(c)(ii) of the Base Indenture, upon notice of redemption having been given as specified in this paragraph, the Notes so called for redemption shall become due and payable at the Redemption Price and on the Redemption Date specified in such notice, in the same manner and with the same effect as if such date was the Stated Maturity specified herein for the Notes, only upon the fulfillment or discharge of the conditions stated in such notice to the satisfaction of the Issuer, acting reasonably, or the waiver of such conditions by the Issuer, in whole or in part, notwithstanding anything to the contrary in the Indenture or this Series Supplement. Any notice of revocation of a notice of redemption shall be delivered by the Issuer to the Holders of the Notes and the Indenture Trustee. |
| (5) | The Notes will not be subject to redemption at the election of the Holders of the Notes. |
| 2.08 | Sinking Fund |
The Notes will not be subject to repurchase or redemption pursuant to any sinking fund.
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| 2.09 | Defeasance |
The Notes will be subject to Defeasance and Covenant Defeasance as described in Article Thirteen of the Base Indenture.
| 2.10 | Form and Certification |
| (1) | The Notes shall be (a) in registered form only, (b) issued as one or more Global Debt Securities held by, or on behalf of, the Depositary in accordance with Section 2.17 of the Base Indenture, (c) registered in the name of the Depositary or its nominee as provided for in Section 2.17 of the Base Indenture, and (d) substantially in the form set forth in Exhibit A to this Series Supplement, subject to any modifications as may be reasonably required from time to time by the Depositary and which are not prejudicial to the beneficial holders of the Notes and subject to any modifications as may be reasonably required from time to time to reflect any variation to the terms and conditions of any additional Notes, or to reflect the terms and conditions of any replacement Note consolidating and restating additional Notes and then existing Notes, as provided in Section 2.02 of this Series Supplement. |
| (2) | The form of certification of the Notes by the Indenture Trustee shall be substantially in the form of the Indenture Trustee’s Certificate set forth in Exhibit A to this Series Supplement. |
| 2.11 | Identification |
For the purpose of this Series Supplement and the Notes:
| (a) | the Depositary shall be CDS; |
| (b) | the Registrar, Paying Agent and Transfer Agent shall be the Indenture Trustee; and |
| (c) | the Place of Payment shall be Calgary, Alberta. |
| 2.12 | Calculation Agent |
| (1) | The Issuer shall appoint a Calculation Agent on or prior to the Interest Reset Determination Date applicable to the First Reset Date; provided, however, that the Issuer shall not be required to appoint a Calculation Agent if the Issuer has elected to redeem all of the Notes on or prior to the First Reset Date; and provided, further, that, if the Issuer has so elected to redeem all of the Notes on or prior to the First Reset Date but does not redeem all of the Notes on or prior to the First Reset Date, the Issuer shall appoint a Calculation Agent not later than the Business Day immediately following the First Reset Date. |
| (2) | The Calculation Agent will determine the applicable interest rate for each Interest Reset Period as of the applicable Interest Reset Determination Date. Promptly upon such determination, the Calculation Agent, if other than the Issuer or an Affiliate of the Issuer, will notify the Issuer of the applicable interest rate for the relevant Interest Reset Period and, provided the Indenture Trustee is not the Calculation Agent, the Issuer will then promptly notify the Indenture Trustee of such interest rate. |
| (3) | The Calculation Agent’s determination of any interest rate and its calculation of the amount of interest for any Interest Reset Period beginning on or after the applicable Interest Reset Date will be conclusive and binding absent manifest error, may be made in the Calculation Agent’s sole discretion and, notwithstanding anything to the contrary herein or any other documentation relating to the Notes, will become effective without consent from any other Person or entity. Such determination of any interest rate and calculation of the amount of interest will be on file at the Issuer’s principal offices and will be made available to any Holder of Notes upon request. |
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| 2.13 | Non-Business Days |
Notwithstanding Section 1.07 of the Base Indenture or any other provision under the Indenture, if any Interest Payment Date or the date of Maturity is not a Business Day, such payment will be made on the next Business Day, and the Holders of such Notes shall not be entitled to any further interest or other payment in respect of such delay.
ARTICLE THREE
DEFERRAL RIGHT AND DIVIDEND STOPPER UNDERTAKING
| 3.01 | Deferral Right |
So long as no Event of Default has occurred and is continuing, the Issuer may elect, at its sole option, at any date other than an Interest Payment Date, to defer the interest payable on the Notes on one or more occasions for up to five consecutive years (a “Deferral Period”). Such deferral will not constitute an Event of Default or any other breach under the Supplemented Indenture. Any instalment of interest whose payment is deferred pursuant to the Deferral Right (“Deferred Interest”) will accrue, compounding on each subsequent Interest Payment Date, until paid, to the extent permitted by law. A Deferral Period terminates on any Interest Payment Date where the Issuer pays all accrued and unpaid interest on such date. No Deferral Period may extend beyond the Stated Maturity and, for greater certainty, all accrued and unpaid interest (including any Deferred Interest) shall be due and payable at the Stated Maturity or the Redemption Date, as the case may be. There shall be no limit on the number of Deferral Periods that may occur.
The Issuer will give the Indenture Trustee and the Holders of the Notes written notice of its election to commence or continue a Deferral Period at least 10 days and not more than 60 days before the next Interest Payment Date.
| 3.02 | Dividend Stopper Undertaking |
Unless the Issuer has paid all accrued and payable interest on the Notes (including Deferred Interest, if any), as applicable, the Issuer will not:
| (a) | declare any dividends on the Dividend Restricted Shares (other than stock dividends on Dividend Restricted Shares) or pay any interest on any Parity Indebtedness; |
| (b) | redeem, purchase, or otherwise retire for value any Dividend Restricted Shares or Parity Indebtedness (unless such redemption, purchase or retirement for value is a Permitted Purchase); or |
| (c) | make any payment to holders of any of the Dividend Restricted Shares or any of the Parity Indebtedness in respect of dividends not declared or paid on such Dividend Restricted Shares or interest not paid on such Parity Indebtedness, respectively. |
ARTICLE FOUR
COVENANTS AND REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE NOTES
| 4.01 | Covenants and Representations and Warranties in the Base Indenture |
It is hereby acknowledged and agreed that Sections 4.02(3), 4.04(2), 4.04(3), 5.01 (Representations and Warranties), 5.02 (Positive Covenants), 5.03 (Negative Covenants), 5.04 (Indenture Trustee May Perform Covenants), 6.01 (Events of Default), 6.02(1) and 6.02(2) of the Base Indenture do not apply to this Series Supplement and the Notes issued hereunder. For greater certainty, the provisions and covenants contained in this Article Four, Article Five and Article Six apply to this Series Supplement and the Notes issued hereunder notwithstanding the provisions, covenants or anything to the contrary contained in Sections 4.02(3), 4.04(2), 4.04(3), 5.01 (Representations and Warranties), 5.02 (Positive Covenants), 5.03 (Negative Covenants), 5.04 (Indenture Trustee May Perform Covenants), 6.01 (Events of Default), 6.02(1) and 6.02(2) of the Base Indenture.
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| 4.02 | Covenants Applicable to the Notes |
The Issuer hereby covenants and agrees with the Indenture Trustee for the benefit of the Indenture Trustee and the Holders of Notes as follows, so long as any Notes are Outstanding:
| (a) | the Issuer will duly and punctually pay or cause to be paid when due to every Holder of Notes the principal of, and premium, interest (subject to Issuer’s Deferral Right as provided for herein) and other amounts on, the Notes; and |
| (b) | the Issuer and each Restricted Subsidiary will preserve and maintain its existence (except as permitted by Article 11 of the Base Indenture), and shall also maintain its qualifications in each jurisdiction to carry on its business except to the extent that failure to maintain such qualifications would not be reasonably expected to have a Material Adverse Effect with respect to such Notes. |
| 4.03 | Compliance Certificate |
The Issuer will deliver to the Indenture Trustee within 140 days after the end of each fiscal year of the Issuer a Certificate of the Issuer stating that, as of the end of such fiscal year, the Issuer was in compliance in all material respects with all covenants and other requirements contained in the Supplemented Indenture, or giving particulars of any such non-compliance.
| 4.04 | Financial Statements |
The Issuer will deliver to the Indenture Trustee within 140 days after the end of each fiscal year of the Issuer audited consolidated financial statements of the Issuer for such fiscal year including the consolidated balance sheet and statements of income, retained earnings and cash flow and within 60 days after the end of each fiscal quarter, other than the last fiscal quarter of each fiscal year, unaudited consolidated financial statements of the Issuer for such fiscal quarter consisting of a consolidated balance sheet and consolidated statements of income, retained earnings and cash flow.
| 4.05 | Agents’ Fees and Expenses |
The Issuer will pay such fees as are agreed upon in writing between the Issuer and the Indenture Trustee and all reasonable expenses, disbursements and advances incurred or made by the Indenture Trustee in the administration or execution of the trusts created by the Supplemented Indenture (including the reasonable compensation and the disbursements of its counsel and all other advisers and assistants not regularly in its employ), both before and after any Default or Event of Default with respect to the Notes until all its duties shall be finally and fully performed, except any such expense, disbursement or advance as may arise from or in connection with the dishonesty, bad faith, wilful misconduct, gross negligence or reckless disregard of any duty by the Indenture Trustee, or the failure to comply with the standard of care referred to in Section 8.01 of the Base Indenture.
| 4.06 | Indenture Trustee May Perform Covenants |
If the Issuer shall fail to perform any of its covenants set forth herein, the Indenture Trustee may in its discretion, but (subject to Section 6.02 of this Series Supplement or unless provided to the contrary in the Indenture) need not, notify the Holders of such failure, and itself may perform any such covenant that is capable of being performed by it, and if any such performance requires the payment of money, it may make such payment with its own funds or with money borrowed by it for such purpose, but shall be under no obligation to do so; provided however that no such performance or payment by the Indenture Trustee shall be deemed to release the Issuer from, the Issuer’s failure to perform its applicable covenant and any amounts so paid or expended by the Indenture Trustee shall be immediately repaid to the Indenture Trustee by the Issuer and shall bear interest until so repaid at a rate of interest that is 5% per annum above the highest rate of interest chargeable from time to time by the Indenture Trustee to its corporate trust customers.
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ARTICLE FIVE
SUBORDINATION OF NOTES
| 5.01 | Notes Subordinated to Senior Indebtedness |
| (a) | The Issuer covenants and agrees, and each Holder of Notes, by the acceptance thereof, likewise covenants and agrees, that the indebtedness represented by the Notes and the payment of the principal, premium (if any), and interest on each and all of the Notes is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of Senior Indebtedness. |
| (b) | The Issuer covenants and agrees that Section 4.04(2) and 4.04(3) of the Base Indenture shall not apply to the Notes and each Holder of Notes, by the acceptance thereof, likewise covenants and agrees that Sections 4.04(2) and 4.04(3) of the Base Indenture shall not apply to the Notes. |
| (c) | In the event (i) of any insolvency or bankruptcy proceedings or any receivership, liquidation, reorganization or other similar proceedings in respect of the Issuer or a substantial part of its property, or of any proceedings for liquidation, dissolution or other winding up of the Issuer, whether or not involving insolvency or bankruptcy, or (ii) subject to the provisions of Section 5.02 that (A) a default shall have occurred with respect to the payment of principal of or interest on or other monetary amounts due and payable on any Senior Indebtedness (without giving effect to any cure period with respect thereto), or (B) there shall have occurred an event of default (other than a default in the payment of principal or interest or other monetary amounts due and payable) in respect of any Senior Indebtedness, as defined therein or in the instrument under which the same is outstanding, permitting the holder or holders thereof to accelerate the maturity thereof (with notice or lapse of time, or both), and such event of default shall have continued beyond the period of grace, if any, in respect thereof, and, in the cases of subclauses (A) and (B) of this clause (c)(ii) such default or event of default shall not have been cured or waived or shall not have ceased to exist, or (iii) that the principal of the Notes shall have been declared due and payable pursuant to the Supplemented Indenture and such declaration shall not have been rescinded and annulled as provided in the Supplemented Indenture, then: |
| (i) | the holders of all Senior Indebtedness shall first be entitled to receive payment of the full amount due thereon, or provision shall be made for such payment in money or money’s worth, before the Holders of any of the Notes are entitled to receive a payment on account of the principal of or interest or premium (if any) on, the indebtedness evidenced by the Notes, including, without limitation, any payments made pursuant to any redemption or purchase for cancellation; |
| (ii) | any payment by, or distribution of assets of, the Issuer of any kind or character, whether in cash, property or securities, to which the Holders of any of the Notes or the Indenture Trustee would be entitled except for the provisions of this Article shall be paid or delivered by the person making such payment or distribution, whether a Custodian or otherwise, directly to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of such Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness, before any payment or distribution is made to the Holders of the Notes or to the Indenture Trustee under the Supplemented Indenture; and |
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| (iii) | in the event that, notwithstanding the foregoing, any payment by, or distribution of assets of, the Issuer of any kind or character, whether in cash, property or securities, in respect of principal of or interest or premium (if any) on the Notes or in connection with any redemption or purchase for cancellation by the Issuer of the Notes, shall be received by the Indenture Trustee or the Holders of any of the Notes before all Senior Indebtedness is paid in full, or provision made for such payment in money or money’s worth, such payment or distribution in respect of principal of or interest or premium (if any) on, the Notes or in connection with any redemption or purchase for cancellation by the Issuer of the Notes shall be paid over to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any such Senior Indebtedness may have been issued, ratably as aforesaid, for application to the payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness. |
| 5.02 | Disputes with Holder of Certain Senior Indebtedness |
Any failure by the Issuer to make any payment on or perform any other obligation under Senior Indebtedness, other than any indebtedness incurred by the Issuer or assumed or guaranteed, directly or indirectly, by the Issuer for money borrowed (or any deferral, renewal, extension or refunding thereof) or any indebtedness or obligation as to which the provisions of this Section 5.02 shall have been waived by the Issuer in the instrument or instruments by which the Issuer incurred, assumed, guaranteed or otherwise created such indebtedness or obligation, shall not be deemed a default or event of default under Section 5.01(c)(ii) of this Series Supplement if (a) the Issuer shall be disputing its obligation to make such payment or perform such obligation and (b) either (i) no final judgment relating to such dispute shall have been issued against the Issuer which is in full force and effect and is not subject to further review, including a judgment that has become final by reason of the expiration of the time within which a party may seek further appeal or review, or (ii) in the event of a judgment that is subject to further review or appeal has been issued, the Issuer shall in good faith be prosecuting an appeal or other proceeding for review and a stay of execution shall have been obtained pending such appeal or review.
| 5.03 | Subrogation |
Subject to the payment in full of all Senior Indebtedness, the Holders of the Notes shall be subrogated (equally and ratably with the holders of all obligations of the Issuer which by their express terms are subordinated to Senior Indebtedness of the Issuer to the same extent as the Notes are subordinated and which are entitled to like rights of subrogation) to the rights of Senior Creditors to receive payments or distributions of cash, property or securities of the Issuer applicable to the Senior Indebtedness until all amounts owing on the Notes shall be paid in full, and as between the Issuer, its creditors other than Senior Creditors and the Holders, no such payment or distribution made to the Senior Creditors by virtue of this Article that otherwise would have been made to the Holders of Notes shall be deemed to be a payment by the Issuer on account of such Senior Indebtedness, it being understood that the provisions of this Article are intended solely for the purpose of defining the relative rights of the Holders, on the one hand, and the Senior Creditors, on the other hand.
| 5.04 | Obligation of Issuer Unconditional |
| (a) | Nothing contained in this Article or elsewhere in the Supplemented Indenture or in the Notes is intended to or shall impair, as among the Issuer, its creditors (other than the Senior Creditors) and the Holders of Notes, the obligation of the Issuer, which is absolute and unconditional, to pay to the Holders of Notes the principal of and interest on the Notes as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of Notes and creditors of the Issuer other than the Senior Creditors, nor shall anything herein or therein prevent the Indenture Trustee or any Holder of Notes from exercising all remedies otherwise permitted by Applicable Law upon default under the Supplemented Indenture, subject to the rights, if any, under this Article of the Senior Creditors in respect of cash, property or securities of the Issuer received upon the exercise of any such remedy. |
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| (b) | Upon payment or distribution of assets of the Issuer referred to in this Article, the Indenture Trustee and the Holders of Notes shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which any such dissolution, winding up, liquidation or reorganization proceeding affecting the affairs of the Issuer is pending or upon a certificate of any Custodian making any payment or distribution, delivered to the Indenture Trustee or to the Holders of Notes, for the purpose of ascertaining the persons entitled to participate in such payment or distribution, the Senior Creditors and the holders of other indebtedness of the Issuer, the amount thereof or payable thereon, the amount paid or distributed thereon and all other facts pertinent thereto or to this Article. |
| 5.05 | Effectuation of Subordination by Indenture Trustee; Waiver of Conflicts |
| (1) | Each Holder of Notes by its acceptance thereof authorizes and directs the Indenture Trustee on its behalf to take such action as may be necessary or appropriate to effect the subordination as provided in this Article and appoints the Indenture Trustee as its attorney-in-fact for any and all such purposes. This appointment shall be irrevocable. Upon request of the Issuer, and upon being funded, indemnified and furnished a Certificate of the Issuer stating that one or more named Persons are Senior Creditors and specifying the amount and nature of the Senior Indebtedness of such Senior Creditor, the Indenture Trustee shall enter into a written agreement or agreements with the Issuer and the Persons named in such Certificate of the Issuer providing that such Persons are entitled to all the rights and benefits of this Article as Senior Creditors, and, if requested by such Senior Creditors, providing that the provisions of this Article and the definitions used herein will not be amended without the consent of such Senior Creditors. Such agreement shall be conclusive evidence that the indebtedness specified therein is Senior Indebtedness; however, nothing herein shall impair the rights of any Senior Creditor who has not entered into such an agreement. |
| (2) | The Issuer and each Holder of Notes (by its acceptance thereof) acknowledge that the Indenture Trustee acts, and may in the future act, as trustee with respect to Senior Indebtedness and hereby waive any material conflict that may arise from such appointment. Notwithstanding anything else in the Supplemented Indenture (including, but not limited to, Article Six of the Base Indenture (as amended by this Series Supplement)), the Holders may not direct the Indenture Trustee to take any action to enforce the payment of the principal of (or premium, if any) or interest on the Notes unless and until the Issuer has been fully released and discharged from its obligations under the Senior Indebtedness by the Senior Creditors. |
| 5.06 | Knowledge of Indenture Trustee |
Notwithstanding the provisions of this Article or any other provisions of the Supplemented Indenture, the Indenture Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of moneys to or by the Indenture Trustee, or the taking of any other action by the Indenture Trustee, unless and until the Indenture Trustee shall have received written notice thereof mailed or delivered to the Indenture Trustee from the Issuer, any Holder of Notes, any paying agent or the holder or representative of any class of Senior Indebtedness.
| 5.07 | Indenture Trustee May Hold Senior Indebtedness |
The Indenture Trustee shall be entitled to all the rights set forth in this Article with respect to any Senior Indebtedness at the time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in the Supplemented Indenture shall deprive the Indenture Trustee of any of its rights as such holder.
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| 5.08 | Rights of Holders of Senior Indebtedness Not Impaired |
| (a) | No right of any present or future holder of any Senior Indebtedness to enforce the subordination herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the Issuer or by any noncompliance by the Issuer with the terms, provisions and covenants of the Supplemented Indenture, regardless of any knowledge thereof any such holder may have or be otherwise charged with. |
| (b) | With respect to the holders of Senior Indebtedness, (i) the duties and obligations of the Indenture Trustee shall be determined solely by the express provisions of the Supplemented Indenture, (ii) the Indenture Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in the Supplemented Indenture, (iii) no implied covenants or obligations shall be read into the Supplemented Indenture against the Indenture Trustee and (iv) the Indenture Trustee shall not be deemed to be a fiduciary as to such holders. |
| 5.09 | Article Applicable to Paying Agents |
In case at any time any Paying Agent other than the Indenture Trustee shall have been appointed by the Issuer and be then acting hereunder, the term Indenture Trustee as used in this Article shall in such case (unless the context shall require otherwise) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in addition to or in place of the Indenture Trustee; provided, however, that Sections 5.06 and 5.07 of this Series Supplement shall not apply to the Issuer if it acts as its own Paying Agent.
| 5.10 | Indenture Trustee; Compensation Not Prejudiced |
Nothing in this Article shall apply to claims of, or payments to, the Indenture Trustee pursuant to Section 4.05 of this Series Supplement.
ARTICLE SIX
EVENTS OF DEFAULT AND REMEDIES
| 6.01 | Events of Default |
Notwithstanding anything in the Indenture to the contrary and solely with respect to the Notes (and not with respect to any other securities issued or outstanding under the Base Indenture), for so long as any of the Notes remain outstanding, “Event of Default” means any one of the following events (whatever the reason for such Event of Default and whether it shall be occasioned by provisions of Article Six of this Series Supplement or be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):
| (a) | the Issuer defaults in the payment of the principal of or any premium on the Notes at the Stated Maturity or the Redemption Price for the Notes when due; |
| (b) | the Issuer defaults in the payment of any interest upon the Notes when it becomes due and payable, and continuance of such default for a period of 30 days (subject to the Issuer’s Deferral Right); |
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| (c) | the Issuer pursuant to or under or within the meaning of Bankruptcy Law: |
| (i) | commences a voluntary case or proceeding; |
| (ii) | consents to the entry of a Bankruptcy Order in an involuntary case or proceeding or the commencement of any case against it; |
| (iii) | consents to the appointment of a Custodian of it or for any substantial part of its property; |
| (iv) | makes a general assignment for the benefit of its creditors or files a proposal or other scheme of arrangement involving the rescheduling or composition of its indebtedness; |
| (v) | files a petition in bankruptcy or an answer or consent seeking reorganization or relief; or |
| (vi) | consents to the filing of such petition in bankruptcy or the appointment of or taking possession by a Custodian; |
| (d) | a court of competent jurisdiction in any involuntary case or proceeding enters a Bankruptcy Order against the Issuer, and such Bankruptcy Order remains unstayed and in effect for 60 consecutive days; or |
| (e) | a Custodian shall be appointed out of court with respect to the Issuer, or with respect to all or any substantial part of the property of the Issuer and, if the Issuer shall be contesting such appointment in good faith, such appointment continues for 90 consecutive days. |
| 6.02 | Acceleration of Maturity; Rescission and Annulment |
Solely with respect to the Notes:
| (1) | If an Event of Default under subsection 6.01(a) or 6.01(b) occurs and is continuing with respect to the Notes, then and in every such case the Indenture Trustee may, in its discretion, and shall upon the request of Holders of not less than 25% in aggregate principal amount of the Notes then Outstanding, declare the principal of all such Notes to be due and payable immediately, by a notice in writing to the Issuer (and to the Indenture Trustee if given by Holders), and upon any such declaration such principal, together with all accrued and unpaid interest (including Deferred Interest, if any) to, but excluding, such date and any other amounts owing with respect thereto, shall immediately become due and payable. |
| (2) | If an Event of Default under subsection 6.01(c), 6.01(d) or 6.01(e) occurs and is continuing, the principal amount of the Notes then Outstanding will become immediately due and payable, together with all accrued and unpaid interest (including Deferred Interest, if any) to, but excluding, such date, and any other amounts owing with respect thereto without any declaration or other act on the part of the Indenture Trustee or any Holder of Notes. |
ARTICLE
SEVEN
MISCELLANEOUS PROVISIONS
| 7.01 | Confirmation of Indenture |
The Indenture, as amended and supplemented by this Series Supplement, is in all respects confirmed.
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| 7.02 | Acceptance of Trusts |
The Indenture Trustee hereby accepts the trusts in this Series Supplement declared and provided for and agrees to perform the same upon the terms and conditions and subject to the provisions set forth in the Indenture.
| 7.03 | Counterparts and Formal Date |
This Series Supplement may be executed in any number of counterparts, and delivered via electronic means (including by way of pdf), each of which so executed and delivered shall be deemed to be an original, but all of which shall together constitute one and the same instrument and notwithstanding their date of execution shall be deemed to bear the date set forth on the first page of this Series Supplement.
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IN WITNESS OF WHICH the Issuer and the Indenture Trustee have caused this Series Supplement to be duly executed by their duly authorized officers as of the date specified on the first page of this Series Supplement.
| COMPUTERSHARE TRUST COMPANY OF CANADA | TELUS CORPORATION | |||||
| by: | “Luci Scholes” | by: | “Doug French” | |||
| Name: | Luci Scholes | Name: | Doug French | |||
| Title: | Corporate Trust Officer | Title: | Executive Vice-President and Chief Financial Officer | |||
| by: | “Corentin Leverrier” | by: | “Mario Mele” | |||
| Name: | Corentin Leverrier | Name: | Mario Mele | |||
| Title: | Manager, Corporate Trust | Title: | Senior Vice-President and Treasurer | |||
EXECUTION PAGE – SUPPLEMENTAL INDENTURE
EXHIBIT A TO FIFTY-SECOND SERIES SUPPLEMENT
TELUS CORPORATION
| No. · | $· |
| CUSIP No. | 87971MCJ0 |
| ISIN No. | CA87971MCJ05 |
6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055
TELUS Corporation (the “Issuer”) for value received hereby acknowledges itself indebted and promises to pay to the Holder hereof on presentation and surrender of this 6.25% Fixed-to-Fixed Rate Junior Subordinated Note, Series CAR (the “Note”) at the principal office of Computershare Trust Company of Canada (the “Indenture Trustee”, which term shall include its successors under the Indenture hereinafter referred to) in Calgary, Alberta, Canada, the principal amount of · dollars in lawful money of Canada ($·), and to pay interest on the outstanding principal amount hereof at the same place in like money (i) from, and including, April 21, 2025 to, but excluding, the First Reset Date at a rate of 6.25% per annum, and thereafter (ii) from, and including, each Interest Reset Date with respect to each Interest Reset Period to, but excluding, the next succeeding Interest Reset Date, the Stated Maturity or the Redemption Date, as the case may be, at a rate per annum equal to the Five Year Government of Canada Yield as of the most recent Interest Reset Determination Date plus a spread of 3.482%, to be reset on each Interest Reset Date; provided, that the interest rate will not reset below 6.25%, as well after as before maturity, default and judgment, with interest on overdue interest at the same rate as more particularly specified in the Indenture.
The outstanding principal amount of this Note is payable in one instalment on July 21, 2055. Subject to the Issuer’s right to defer interest payments as provided for in the Indenture (the “Deferral Right”), interest on this Note that accrues for the period from, and including, April 21, 2025 to, but excluding, January 21, 2026 is payable on the first Interest Payment Date (namely, January 21, 2026) in an aggregate amount equal to $·, and interest on this Note that accrues from and including January 21, 2026 is payable in arrears in equal semi-annual instalments on January 21 and July 21 of each year beginning January 21, 2026. All accrued and unpaid interest on this Note is payable on the Stated Maturity.
All payments made by the Issuer under or with respect to this Note will be made free and clear of and without withholding or deduction for or on account of any present or future tax, duty, levy, impost, assessment or other governmental charge imposed or levied by or on behalf of the Government of Canada or of any province or territory thereof or therein or by any authority or agency thereof or therein having power to tax (hereinafter “Taxes”) unless the Issuer is required to withhold or deduct Taxes by Applicable Law or by the interpretation or administration thereof by the relevant Governmental Authority.
This Note is one of a duly authorized Series of Debt Securities designated as 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055 issued under a trust indenture dated as of May 22, 2001 (the “Base Indenture”) as amended and supplemented by the forty-seventh supplement to the Base Indenture, dated January 2, 2024 (the “Forty-Seventh Supplement”) and a fifty-second series supplement (the “Series Supplement”) dated as of April 21, 2025 (the Series Supplement, together with the Base Indenture and the Forty-Seventh Supplement, and as further amended, the “Indenture”), in each case between the Issuer and the Indenture Trustee. Reference is hereby made to the Indenture as to the nature and extent of the rights of the Holders of the Debt Securities of this Series, all to the same effect as if the provisions of the Indenture were herein set forth, to all of which provisions the Holder of this Note by acceptance hereof assents. All capitalized terms used but not defined herein have the meanings specified in the Indenture.
A-1
So long as no Event of Default has occurred and is continuing, the Issuer may elect, at its sole option, at any date other than an Interest Payment Date, to defer the interest payable on the Notes on one or more occasions for up to five consecutive years (a “Deferral Period”). Such deferral will not constitute an Event of Default or any other breach under the Indenture. Any instalment of interest whose payment is deferred pursuant to the Deferral Right (“Deferred Interest”) will accrue, compounding on each subsequent Interest Payment Date, until paid, to the extent permitted by law. A Deferral Period terminates on any Interest Payment Date where the Issuer pays all accrued and unpaid interest on such date. No Deferral Period may extend beyond the Stated Maturity and, for greater certainty, all accrued and unpaid interest (including any Deferred Interest) shall be due and payable at the Stated Maturity or the Redemption Date, as the case may be. There shall be no limit on the number of Deferral Periods that may occur.
Each Debt Security of this Series, including this Note, may be redeemed by the Issuer, at its option and without the consent of any Holder, in whole or at any time in part from time to time on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holders, (i) on any day in the period commencing on and including the date that is 90 days prior to the First Reset Date and ending on and including the First Reset Date, and (ii) after the First Reset Date, on any Interest Payment Date, in each case, in accordance with the Indenture and at a Redemption Price equal to 100% of the principal amount of this Note redeemed, together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date.
In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem this Note in whole, but not in part, at any time within 90 days following the occurrence of a Tax Event at a Redemption Price equal to 100% of the outstanding principal amount of this Note together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date.
In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem this Note in whole, but not in part at any time within 90 days following the occurrence of a Rating Event at a Redemption Price equal to 102% of the outstanding principal amount of this Note together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date
At the Issuer’s discretion, any redemption (including any redemption pursuant to a Tax Event or Rating Event) may be subject to one or more conditions precedent, and any such conditional redemption may be revoked in the event that any or all of such conditions have not been satisfied or waived by the Redemption Date.
The outstanding principal amount of this Note may become or be declared to be due and payable by the Indenture Trustee before maturity in the circumstances set out in the Indenture.
This Note is transferable only in accordance with the provisions of the Indenture and subject to the last two sentences of this paragraph. No transfer of this Note shall be valid unless made on the Register kept by and at the principal office of the Registrar in Calgary, Alberta, by the Holder hereof or its attorney duly appointed by instrument in writing in form and execution satisfactory to the Registrar upon compliance with such reasonable requirements as the Registrar may prescribe. Except as otherwise provided in the Indenture, this Note may be transferred, in whole but not in part, only to another nominee of the Depositary for the 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055 or to a successor Depositary or to a nominee of such successor Depositary. Unless this certificate is presented by an authorized representative of CDS Clearing and Depository Services Inc. (“CDS”) to TELUS Corporation (the “Issuer”) or its agent for registration of transfer, exchange or payment, and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such other name as is requested by an authorized representative of CDS (and any payment is made to CDS & CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered holder hereof, CDS & CO., has a property interest in the securities represented by this certificate herein and it is a violation of its rights for another person to hold, transfer or deal with this certificate.
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The Indenture contains provisions making binding upon all Holders of the Debt Securities of this Series, or upon the Holders of all Series outstanding under the Indenture, certain Holder Actions taken by the Holders of a specified majority of the Debt Securities of this Series, or of all Series, as the case may be, then outstanding.
This Note shall not become obligatory for any purpose until certified by the Indenture Trustee.
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IN WITNESS OF WHICH TELUS Corporation has caused this 6.25% Fixed-to-Fixed Rate Junior Subordinated Note, Series CAR due July 21, 2055 to be signed by its duly authorized officer on ·.
| TELUS CORPORATION | |||
| by: | |||
| Name: | Doug French | ||
| Title: | Executive Vice-President and Chief Financial Officer | ||
EXECUTION PAGE – GLOBAL NOTE
INDENTURE TRUSTEE’S CERTIFICATE
This 6.25% Fixed-to-Fixed Rate Junior Subordinated Note, Series CAR due July 21, 2055 is one of the 6.25% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAR due July 21, 2055 referred to in the Indenture (CUSIP No. 87971MCJ0).
| COMPUTERSHARE TRUST COMPANY OF CANADA | ||
| by: | ||
| Authorized Signing Officer | ||
(Form of Registration Panel)
(No writing hereon except by the Indenture Trustee)
| Date of Registration | In Whose name Registered | Authorized Signature of Indenture Trustee | ||
Exhibit 99.4
TELUS CORPORATION
as Issuer
and
COMPUTERSHARE TRUST COMPANY OF CANADA
as Indenture Trustee
FIFTY-THIRD SERIES SUPPLEMENT
Dated as of April 21, 2025
Supplementing the Trust Indenture dated as of May 22, 2001
between TELUS Corporation, as Issuer and
Computershare Trust Company of
Canada, as Indenture Trustee,
and providing for the issue of
6.75% Fixed-to-Fixed Rate Junior
Subordinated Notes, Series CAS due July 21, 2055
in the aggregate principal amount of $500,000,000
TABLE OF CONTENTS
| Article One Interpretation | 1 | ||
| 1.01 | To be Read with Indenture; Governing Law | 1 | |
| 1.02 | Definitions | 1 | |
| 1.03 | Conflict Between Series Supplement and Indenture | 5 | |
| 1.04 | Interpretation Provisions in Indenture | 5 | |
| 1.05 | Exhibits | 5 | |
| Article Two Debt Securities | 5 | ||
| 2.01 | Creation and Designation | 5 | |
| 2.02 | Limitation on Aggregate Principal Amount | 5 | |
| 2.03 | Currency | 6 | |
| 2.04 | Denominations | 6 | |
| 2.05 | Date and Stated Maturity | 6 | |
| 2.06 | Interest | 6 | |
| 2.07 | Redemption and Purchase | 7 | |
| 2.08 | Sinking Fund | 7 | |
| 2.09 | Defeasance | 8 | |
| 2.10 | Form and Certification | 8 | |
| 2.11 | Identification | 8 | |
| 2.12 | Calculation Agent | 8 | |
| 2.13 | Non-Business Days | 9 | |
| Article Three Deferral Right and Dividend Stopper Undertaking | 9 | ||
| 3.01 | Deferral Right | 9 | |
| 3.02 | Dividend Stopper Undertaking | 9 | |
| Article Four Covenants and Representations and Warranties With Respect To The Notes | 9 | ||
| 4.01 | Covenants and Representations and Warranties in the Base Indenture | 9 | |
| 4.02 | Covenants Applicable to the Notes | 10 | |
| 4.03 | Compliance Certificate | 10 | |
| 4.04 | Financial Statements | 10 | |
| 4.05 | Agents’ Fees and Expenses | 10 | |
| 4.06 | Indenture Trustee May Perform Covenants | 10 | |
| Article Five Subordination Of Notes | 11 | ||
| 5.01 | Notes Subordinated to Senior Indebtedness | 11 | |
| 5.02 | Disputes with Holder of Certain Senior Indebtedness | 12 | |
| 5.03 | Subrogation | 12 | |
| 5.04 | Obligation of Issuer Unconditional | 12 | |
| 5.05 | Effectuation of Subordination by Indenture Trustee; Waiver of Conflicts | 13 | |
| 5.06 | Knowledge of Indenture Trustee | 13 | |
| 5.07 | Indenture Trustee May Hold Senior Indebtedness | 13 | |
| 5.08 | Rights of Holders of Senior Indebtedness Not Impaired | 14 | |
| 5.09 | Article Applicable to Paying Agents | 14 | |
| 5.10 | Indenture Trustee; Compensation Not Prejudiced | 14 | |
| Article Six Events Of Default and Remedies | 14 | ||
| 6.01 | Events of Default | 14 | |
| 6.02 | Acceleration of Maturity; Rescission and Annulment | 15 | |
| Article Seven Miscellaneous Provisions | 15 | ||
| 7.01 | Confirmation of Indenture | 15 | |
| 7.02 | Acceptance of Trusts | 16 | |
| 7.03 | Counterparts and Formal Date | 16 | |
| Exhibit A To Fifty-Third Series Supplement | A-1 | ||
THIS IS THE FIFTY-THIRD SERIES SUPPLEMENT dated as of April 21, 2025
BETWEEN:
TELUS CORPORATION, in its capacity as Issuer
- and-
COMPUTERSHARE TRUST COMPANY OF CANADA,
a trust company under the laws of Canada, in its capacity as Indenture Trustee
WHEREAS the Issuer and the Indenture Trustee have entered into a trust indenture dated as of May 22, 2001 (the “Base Indenture”), as amended and supplemented by the forty-seventh supplement to the Base Indenture, dated January 2, 2024 between the Issuer and the Indenture Trustee (together, with the Base Indenture, the “Indenture” and the Indenture as further amended and supplemented by this Series Supplement , the “Supplemented Indenture”);
AND WHEREAS pursuant to Section 2.02 of the Base Indenture, the Issuer may from time to time create and issue one or more new Series of Debt Securities, subject to the satisfaction of certain conditions set forth in the Indenture and in the related Series Supplement;
AND WHEREAS the Principal Terms of any new Series of Debt Securities are to be set forth in a Series Supplement, which amends and supplements the Indenture in relation to such Series;
AND WHEREAS this Series Supplement relates to the Series of Debt Securities to be designated as 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 and the Issuer and the Indenture Trustee are entering into this Series Supplement in order to establish the Principal Terms of such Series and to provide for the issuance of such Series.
NOW THEREFORE THIS SERIES SUPPLEMENT WITNESSES and it is hereby covenanted, agreed and declared as follows:
ARTICLE ONE
INTERPRETATION
| 1.01 | To be Read with Indenture; Governing Law |
This Series Supplement is supplemental to the Indenture, and the Indenture and this Series Supplement shall hereafter be read together and shall have effect, so far as practicable, with respect to the 6.75% Fixed- to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 as if all the provisions of the Indenture and this Series Supplement were contained in one instrument, which instrument shall be governed by and construed in accordance with the laws of the Province of Ontario, and the federal laws of Canada applicable in such Province. The parties hereto expressly request and require that this document be drawn up in English. Les parties aux présentes conviennent et exigent que cette entente et tous les documents qui s’y rattachent soient rédigés en anglais.
| 1.02 | Definitions |
| (1) | All capitalized terms used but not defined in this Series Supplement shall have the meanings specified in the Indenture except that for the purpose, and only for the purpose, of this Series Supplement and the Notes: |
| (a) | the definition of the term “Business Day” is amended to read as follows: |
“Business Day” shall mean a day other than a Saturday, Sunday or other day on which banking institutions in the Province of Ontario are authorized or required by law to close.
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| (b) | the definition of the term “Event of Default” is amended to read as follows: |
“Event of Default” shall have the meaning specified in Section 6.01 of this Series Supplement.
| (c) | the definition of “Indebtedness” as such term is defined in the Indenture is deleted. |
| (2) | In addition, the following terms shall have the following meanings: |
“Administrative Action” shall mean, with respect to a Tax Event (as defined herein), any judicial decision, administrative pronouncement, published or private ruling, regulatory procedure, rule, notice, announcement, assessment or reassessment (including any notice or announcement of intent to adopt or issue such decision, pronouncement, ruling, procedure, rule, notice, announcement, assessment or reassessment).
“Bankruptcy Law” shall mean the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) or any other similar applicable Canadian federal, provincial or territorial law or similar applicable law of any other jurisdiction relating to bankruptcy, insolvency, winding up, liquidation, reorganization or relief of debtors.
“Bankruptcy Order” shall mean any court order for liquidation, winding up, dissolution or reorganization, or appointing a Custodian of a debtor or of all or any substantial part of a debtor’s property, or providing for the staying, arrangement, adjustment or composition of indebtedness or other relief of a debtor.
“Base Indenture” shall have the meaning specified in the recitals of this Series Supplement.
“Bloomberg Screen GCAN5YR Page” shall mean the display designated as page “GCAN5YR<INDEX>” on the Bloomberg Financial L.P. service (or such other page as may replace the GCAN5YR page on that service for purposes of displaying Government of Canada bond yields).
“Calculation Agent” shall mean any Person, which may be the Issuer or any of the Issuer’s Affiliates, appointed by the Issuer from time to time to act as calculation agent with respect to the Notes.
“Common Shares” means the common shares in the capital of the Issuer.
“Custodian” shall mean any receiver, interim receiver, receiver and manager, trustee in bankruptcy, liquidator, sequestrator or similar official under any Bankruptcy Law or any other Person with like powers.
“DBRS” shall mean DBRS Limited.
“Deferral Period” shall have the meaning specified in Section 3.01 of this Series Supplement.
“Deferral Right” shall have the meaning specified in Section 2.06 of this Series Supplement.
“Deferred Interest” shall have the meaning specified in Section 3.01 of this Series Supplement.
“Dividend Restricted Shares” shall mean the Common Shares and any preferred shares in the capital of the Issuer.
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“First Reset Date” shall mean July 21, 2035.
“Five Year Government of Canada Yield” shall mean, as at any Interest Reset Determination Date for a Interest Reset Period, the bid yield to maturity on such date (assuming semi-annual compounding) of a Canadian dollar denominated non-callable Government of Canada bond with a term to maturity of five years as quoted as of 10:00 a.m. (Toronto time) on such date and which appears on the Bloomberg Screen GCAN5YR Page on such date; provided that, if such rate does not appear on the Bloomberg Screen GCAN5YR Page on such date, “Five Year Government of Canada Yield” means the average of the yields determined by two registered Canadian investment dealers (each of which is a member of the Canadian Investment Regulatory Organization), selected by the Issuer, as being the yield to maturity (assuming semi-annual compounding) on such date at or about 10:00 a.m. (Toronto time) which a Canadian dollar denominated non-callable Government of Canada bond would carry if issued in Canadian dollars at 100% of its principal amount on such date with a term to maturity of five years.
“Indenture” shall have the meaning specified in the recitals of this Series Supplement.
“Interest Payment Date” shall mean January 21 and July 21 of each year during which any Notes are outstanding until Maturity.
“Interest Period” shall mean the period commencing on the later of the date of issuance of the Notes or the last Interest Payment Date to, but excluding, the next Interest Payment Date.
“Interest Reset Date” shall mean the First Reset Date and each date falling on the five- year anniversary of the preceding Interest Reset Date.
“Interest Reset Determination Date” shall mean, for any Interest Reset Period, the day falling two Business Days prior to the applicable Interest Reset Date for such Interest Reset Period.
“Interest Reset Period” shall mean the period from, and including, the First Reset Date to, but excluding, the next succeeding Interest Reset Date, and thereafter each period from, and including, each Interest Reset Date to, but excluding, the next succeeding Interest Reset Date, the Stated Maturity, or the Redemption Date, as the case may be.
“Moody’s” shall mean Moody’s Investors Service Inc.
“Notes” shall have the meaning specified in Section 2.01 of this Series Supplement.
“Parity Indebtedness” shall mean any class or series of the Issuer’s debt securities or any other indebtedness of the Issuer for borrowed money outstanding on the date hereof or hereafter created which ranks on a parity with the Notes as to distributions upon liquidation, dissolution or winding-up.
“Permitted Purchase” shall mean a redemption, purchase or other retirement for value of any Dividend Restricted Shares or Parity Indebtedness (i) pursuant to any purchase obligation, sinking fund, retraction privilege or mandatory redemption provisions attaching to any series of Dividend Restricted Shares or (ii) with respect to Dividend Restricted Shares, (a) out of the net cash proceeds of a substantially concurrent issuance and sale of, or made in exchange for (including by using), Dividend Restricted Shares or a substantially concurrent net cash capital contribution received by the Issuer (other than from a subsidiary of the Issuer), (b) deemed to occur upon the exercise or exchange of options, warrants or other convertible or exchangeable securities, to the extent such Dividend Restricted Shares represent all or a portion of the exercise, conversion or exchange price thereof, together with any withholding to pay for the taxes payable in connection therewith or (c) cash payments in lieu of issuing fractional shares in connection with share dividends, splits or business combinations or the exercise of warrants, options or other securities convertible into or exchangeable for Dividend Restricted Shares of the Issuer.
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“Rating Event” shall mean, with respect to the Notes, any Specified Rating Agency amends, clarifies or changes the methodology or criteria it uses to assign equity credit to securities such as the Notes, which amendment, clarification or change results in (i) the shortening of the length of time the Notes are assigned a particular level of equity credit by that Specified Rating Agency as compared to the length of time they would have been assigned that level of equity credit by that Specified Rating Agency or its predecessor on the date of issuance, or (ii) the lowering of the equity credit assigned to the Notes by that Specified Rating Agency compared to the equity credit assigned by that Specified Rating Agency or its predecessor on the date of issuance.
“Redemption Date” means the date fixed for redemption of the Notes as specified in notice(s) of redemption delivered pursuant to Section 2.07 of this Series Supplement.
“S&P” shall mean Standard & Poor’s Rating Services, a business unit of S&P Global Canada Corp.
“Specified Rating Agency” shall mean each of Moody’s, S&P and DBRS or any other designated rating organization (as defined in National Instrument 44-101 – Short Form Prospectus Distributions), as applicable, that then publishes a rating for the Issuer and, in each case, their respective successors.
“Senior Creditor” shall mean a holder or holders of Senior Indebtedness and includes any representative or representatives or trustee or trustees of any such holder and such other lenders providing advances to the Issuer pursuant to Senior Indebtedness.
“Senior Indebtedness” shall mean all present and future indebtedness, liabilities and other obligations (other than Subordinated Indebtedness) of, or guaranteed or assumed by, the Issuer for borrowed money or evidenced by bonds, debentures or notes or obligations of the Issuer for or in respect of bankers’ acceptances (including the face amount thereof), letters of credit and letters of guarantee (including all reimbursement obligations in respect of each of the foregoing) or other similar instruments, and amendments, renewals, extensions, modifications and refunding of any such indebtedness, liabilities or other obligations including, without limitation, the senior notes issued by the Issuer.
“Subordinated Indebtedness” shall mean the Notes or any other obligations that are, pursuant to the terms of the instrument or agreement creating or evidencing those obligations, expressly designated as being (i) subordinate in right of payment to Senior Indebtedness or (ii) pari passu with, or subordinate to, the Notes in right of payment.
“Stated Maturity” shall have the meaning specified in Section 2.05 of this Series Supplement.
“Supplemented Indenture” shall have the meaning specified in the recitals of this Series Supplement.
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“Tax Event” shall mean, with respect to the Notes, the Issuer has received an opinion of counsel of a law firm that is nationally recognized in Canada or the U.S. and experienced in such matters (who may be counsel to the Issuer) to the effect that, as a result of (i) any amendment to, clarification of, or change (including any announced prospective amendment, clarification or change) in the laws, or any regulations or rulings thereunder, or any application or interpretation thereof, of Canada or the U.S. or any political subdivision or authority or agency thereof or therein having power to tax or any applicable tax treaty, (ii) any Administrative Action, or (iii) any amendment to, clarification of, or change in, the official position with respect to or the interpretation of any Administrative Action or any interpretation or pronouncement that provides for a position with respect to an Administrative Action that differs from the theretofore generally accepted position, in each of case (i), (ii) or (iii), by any legislative body, court, governmental authority or agency, regulatory body or taxing authority irrespective of the manner in which such amendment, clarification, change, Administrative Action, interpretation or pronouncement is made known, which amendment, clarification, change or Administrative Action is effective or which interpretation, pronouncement or Administrative Action is announced on or after the date of issuance of the Notes, there is a more than insubstantial risk (assuming any proposed or announced amendment, clarification, change, interpretation, pronouncement or Administrative Action is effective and applicable) that the Issuer is, or may be subject to more than a de minimis amount of additional taxes, duties or other governmental changes or civil liabilities because the treatment of any of its items of income, taxable income, expense, taxable capital or taxable paid-up capital with respect to the Notes (including the treatment or deductibility by the Issuer of interest on the Notes), as or as would be reflected in any tax return or form filed, to be filed, or that otherwise would have been filed, will not be respected by a taxing authority.
| 1.03 | Conflict Between Series Supplement and Indenture |
If any term or provision contained in this Series Supplement shall conflict or be inconsistent with any term or provision of the Indenture, the terms and provisions of this Series Supplement shall govern; provided, however, that the terms and provisions of this Series Supplement may modify or amend the terms of the Indenture solely as applied to the Notes.
| 1.04 | Interpretation Provisions in Indenture |
This Series Supplement shall, unless the context otherwise requires, be subject to the interpretation provisions contained in Article One of the Base Indenture.
| 1.05 | Exhibits |
Exhibit A to this Series Supplement forms part of this Series Supplement.
ARTICLE TWO
DEBT SECURITIES
| 2.01 | Creation and Designation |
The Issuer is hereby authorized to issue under the Indenture a Series of Debt Securities designated “6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055” (the “Notes”) having the terms set forth in this Article Two and Article Three.
| 2.02 | Limitation on Aggregate Principal Amount |
The aggregate principal amount of the Notes that may be issued (except for Notes issued upon registration of transfer of, or in exchange for, or in lieu of, other Notes) shall be initially limited to $500,000,000. The Issuer may, from time to time, without the consent of any existing Holders of the Notes, create and issue additional Notes hereunder in such additional amounts as the Issuer may determine having the same terms and conditions as the Notes in all respects, except for such variations to such terms and conditions as may be required, in the reasonable and good faith opinion of the Issuer, to reflect the different issue dates of such additional Notes and the then existing Notes and the intention that all such additional Notes and then existing Notes be fungible for trading purposes from the issue date of such additional Notes (which variations may include, among other things, a different issue date, a different issue price, a different interest commencement date, a different first interest payment date, a different initial interest period, and a different interest payment calculation for the initial interest period). Additional Notes so created and issued will be consolidated with and form a single Series with the then existing Notes and, if the Issuer acting reasonably and in good faith determines that it is advisable or advantageous to do so, the Issuer may accept such additional Notes and then existing Notes (including any such Notes in global form held by a Depositary) in exchange for consolidated and restated replacement Notes reflecting the terms and conditions of such additional Notes and then existing Notes.
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| 2.03 | Currency |
The Notes shall be denominated in, and all principal of, and premium, interest and other amounts on the Notes shall be payable in, Canadian Dollars. Unless expressly provided to the contrary in this Series Supplement, all amounts expressed in this Series Supplement and in each Note in terms of money refer to Canadian Dollars.
| 2.04 | Denominations |
The Notes shall be denominated in integral multiples of $1,000.
| 2.05 | Date and Stated Maturity |
The Series Issuance Date for the Notes shall be April 21, 2025 and the entire principal amount of the Notes shall become due and payable, together with any accrued and unpaid interest on the Notes, on July 21, 2055 (such date being the “Stated Maturity” of the outstanding principal amount of the Notes).
| 2.06 | Interest |
| (1) | Interest shall accrue on the aggregate unpaid principal amount of each Note, together, to the extent permitted by Applicable Law and subject to Article Three, with interest on overdue interest not paid on an Interest Payment Date for the Notes, as well after as before default and judgment, from, and including, April 21, 2025 to, but excluding, the First Reset Date, at a rate of interest equal to 6.75% per annum. Thereafter, interest shall accrue from, and including, each Interest Reset Date with respect to each Interest Reset Period to, but excluding, the next succeeding Interest Reset Date, the Stated Maturity or the Redemption Date, as the case may be, at a rate per annum equal to the Five Year Government of Canada Yield as of the most recent Interest Reset Determination Date plus a spread of 3.609%, to be reset on each Interest Reset Date; provided, that the interest rate will not reset below 6.75%. Subject to the Issuer’s right to defer interest payments as provided in Article Three of this Series Supplement (the “Deferral Right”), (i) interest that accrues on a Note for the period from April 21, 2025 to but excluding January 21, 2026 shall be payable on the first Interest Payment Date (namely, January 21, 2026) in an aggregate amount equal to $25,289,383.56, (ii) interest that accrues on a Note for the period from and including January 21, 2026, subject to any variation to the terms and conditions of the initial interest payment under any additional Notes and subject to the resetting of the per annum rate of interest on each Interest Reset Date as specified above, shall be payable in arrears in equal semi-annual instalments on each Interest Payment Date for the Notes and all accrued and unpaid interest on the Notes shall be paid on the Maturity of the Notes. |
| (2) | Interest on the Notes for any period (other than a full Interest Period) will be computed on the basis of the actual number of days in such period over a year of 365 days. |
| (3) | Subject to the Deferral Right, the Interest Payment Dates for the Notes shall be January 21 and July 21 in each year beginning January 21, 2026. |
| (4) | The Regular Interest Record Dates for the Notes shall be January 6 (with respect to the January 21 Interest Payment Date) and July 6 (with respect to the July 21 Interest Payment Date) in each year. |
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| 2.07 | Redemption and Purchase |
| (1) | The Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem the Notes in whole or at any time in part from time to time, (i) on any day in the period commencing on and including the date that is 90 days prior to the First Reset Date and ending on and including the First Reset Date, and (ii) after the First Reset Date, on any Interest Payment Date, in each case, at a Redemption Price equal to 100% of the principal amount of the Notes redeemed together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date. For the avoidance of doubt, if there is a Tax Event or a Rating Event on or after the date that is 90 days prior to the First Reset Date, the Issuer may optionally redeem the Notes in accordance with the optional redemption right in this Section 2.07(1) without regard to the additional rights of redemption provided for such Tax Event or Rating Event in Section 2.07(2) or Section 2.07(3), as applicable. |
| (2) | In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem the Notes in whole, but not in part, at any time within 90 days following the occurrence of a Tax Event at a Redemption Price equal to 100% of the outstanding principal amount of the Notes together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date. |
| (3) | In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem the Notes in whole, but not in part at any time within 90 days following the occurrence of a Rating Event at a Redemption Price equal to 102% of the outstanding principal amount of the Notes together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date. |
| (4) | Notice of redemption given to the Holders of the Notes pursuant to the Indenture and this Series Supplement may, at the option of the Issuer, be subject to one or more conditions precedent, including but not limited to, completion of an equity or other securities offering, an incurrence of indebtedness or other financing or any other corporate transaction or event and, in such case, such notice of redemption shall specify, in addition to the requirements of Section 3.01(c) of the Base Indenture, the details and terms of any event (e.g., a securities offering, financing or other corporate transaction) on which such redemption is conditional and, if applicable, state that, in the Issuer’s discretion, such redemption may not occur and such notice may be revoked in the event that any or all such conditions shall not have been satisfied or waived by the applicable Redemption Date. Notice of any redemption in respect thereof may, at the Issuer’s discretion, be given prior to the completion of one or more of the transactions or events upon which the redemption is conditioned and such redemption may be partial as a result of only some of the conditions being satisfied. Notwithstanding Section 3.01(e) and Section 3.01(c)(ii) of the Base Indenture, upon notice of redemption having been given as specified in this paragraph, the Notes so called for redemption shall become due and payable at the Redemption Price and on the Redemption Date specified in such notice, in the same manner and with the same effect as if such date was the Stated Maturity specified herein for the Notes, only upon the fulfillment or discharge of the conditions stated in such notice to the satisfaction of the Issuer, acting reasonably, or the waiver of such conditions by the Issuer, in whole or in part, notwithstanding anything to the contrary in the Indenture or this Series Supplement. Any notice of revocation of a notice of redemption shall be delivered by the Issuer to the Holders of the Notes and the Indenture Trustee. |
| (5) | The Notes will not be subject to redemption at the election of the Holders of the Notes. |
| 2.08 | Sinking Fund |
The Notes will not be subject to repurchase or redemption pursuant to any sinking fund.
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| 2.09 | Defeasance |
The Notes will be subject to Defeasance and Covenant Defeasance as described in Article Thirteen of the Base Indenture.
| 2.10 | Form and Certification |
| (1) | The Notes shall be (a) in registered form only, (b) issued as one or more Global Debt Securities held by, or on behalf of, the Depositary in accordance with Section 2.17 of the Base Indenture, (c) registered in the name of the Depositary or its nominee as provided for in Section 2.17 of the Base Indenture, and (d) substantially in the form set forth in Exhibit A to this Series Supplement, subject to any modifications as may be reasonably required from time to time by the Depositary and which are not prejudicial to the beneficial holders of the Notes and subject to any modifications as may be reasonably required from time to time to reflect any variation to the terms and conditions of any additional Notes, or to reflect the terms and conditions of any replacement Note consolidating and restating additional Notes and then existing Notes, as provided in Section 2.02 of this Series Supplement. |
| (2) | The form of certification of the Notes by the Indenture Trustee shall be substantially in the form of the Indenture Trustee’s Certificate set forth in Exhibit A to this Series Supplement. |
| 2.11 | Identification |
For the purpose of this Series Supplement and the Notes:
| (a) | the Depositary shall be CDS; |
| (b) | the Registrar, Paying Agent and Transfer Agent shall be the Indenture Trustee; and |
| (c) | the Place of Payment shall be Calgary, Alberta. |
| 2.12 | Calculation Agent |
| (1) | The Issuer shall appoint a Calculation Agent on or prior to the Interest Reset Determination Date applicable to the First Reset Date; provided, however, that the Issuer shall not be required to appoint a Calculation Agent if the Issuer has elected to redeem all of the Notes on or prior to the First Reset Date; and provided, further, that, if the Issuer has so elected to redeem all of the Notes on or prior to the First Reset Date but does not redeem all of the Notes on or prior to the First Reset Date, the Issuer shall appoint a Calculation Agent not later than the Business Day immediately following the First Reset Date. |
| (2) | The Calculation Agent will determine the applicable interest rate for each Interest Reset Period as of the applicable Interest Reset Determination Date. Promptly upon such determination, the Calculation Agent, if other than the Issuer or an Affiliate of the Issuer, will notify the Issuer of the applicable interest rate for the relevant Interest Reset Period and, provided the Indenture Trustee is not the Calculation Agent, the Issuer will then promptly notify the Indenture Trustee of such interest rate. |
| (3) | The Calculation Agent’s determination of any interest rate and its calculation of the amount of interest for any Interest Reset Period beginning on or after the applicable Interest Reset Date will be conclusive and binding absent manifest error, may be made in the Calculation Agent’s sole discretion and, notwithstanding anything to the contrary herein or any other documentation relating to the Notes, will become effective without consent from any other Person or entity. Such determination of any interest rate and calculation of the amount of interest will be on file at the Issuer’s principal offices and will be made available to any Holder of Notes upon request. |
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| 2.13 | Non-Business Days |
Notwithstanding Section 1.07 of the Base Indenture or any other provision under the Indenture, if any Interest Payment Date or the date of Maturity is not a Business Day, such payment will be made on the next Business Day, and the Holders of such Notes shall not be entitled to any further interest or other payment in respect of such delay.
ARTICLE THREE
DEFERRAL RIGHT AND DIVIDEND STOPPER UNDERTAKING
| 3.01 | Deferral Right |
So long as no Event of Default has occurred and is continuing, the Issuer may elect, at its sole option, at any date other than an Interest Payment Date, to defer the interest payable on the Notes on one or more occasions for up to five consecutive years (a “Deferral Period”). Such deferral will not constitute an Event of Default or any other breach under the Supplemented Indenture. Any instalment of interest whose payment is deferred pursuant to the Deferral Right (“Deferred Interest”) will accrue, compounding on each subsequent Interest Payment Date, until paid, to the extent permitted by law. A Deferral Period terminates on any Interest Payment Date where the Issuer pays all accrued and unpaid interest on such date. No Deferral Period may extend beyond the Stated Maturity and, for greater certainty, all accrued and unpaid interest (including any Deferred Interest) shall be due and payable at the Stated Maturity or the Redemption Date, as the case may be. There shall be no limit on the number of Deferral Periods that may occur.
The Issuer will give the Indenture Trustee and the Holders of the Notes written notice of its election to commence or continue a Deferral Period at least 10 days and not more than 60 days before the next Interest Payment Date.
| 3.02 | Dividend Stopper Undertaking |
Unless the Issuer has paid all accrued and payable interest on the Notes (including Deferred Interest, if any), as applicable, the Issuer will not:
| (a) | declare any dividends on the Dividend Restricted Shares (other than stock dividends on Dividend Restricted Shares) or pay any interest on any Parity Indebtedness; |
| (b) | redeem, purchase, or otherwise retire for value any Dividend Restricted Shares or Parity Indebtedness (unless such redemption, purchase or retirement for value is a Permitted Purchase); or |
| (c) | make any payment to holders of any of the Dividend Restricted Shares or any of the Parity Indebtedness in respect of dividends not declared or paid on such Dividend Restricted Shares or interest not paid on such Parity Indebtedness, respectively. |
ARTICLE FOUR
COVENANTS AND REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE NOTES
| 4.01 | Covenants and Representations and Warranties in the Base Indenture |
It is hereby acknowledged and agreed that Sections 4.02(3), 4.04(2), 4.04(3), 5.01 (Representations and Warranties), 5.02 (Positive Covenants), 5.03 (Negative Covenants), 5.04 (Indenture Trustee May Perform Covenants), 6.01 (Events of Default), 6.02(1) and 6.02(2) of the Base Indenture do not apply to this Series Supplement and the Notes issued hereunder. For greater certainty, the provisions and covenants contained in this Article Four, Article Five and Article Six apply to this Series Supplement and the Notes issued hereunder notwithstanding the provisions, covenants or anything to the contrary contained in Sections 4.02(3), 4.04(2), 4.04(3), 5.01 (Representations and Warranties), 5.02 (Positive Covenants), 5.03 (Negative Covenants), 5.04 (Indenture Trustee May Perform Covenants), 6.01 (Events of Default), 6.02(1) and 6.02(2) of the Base Indenture.
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| 4.02 | Covenants Applicable to the Notes |
The Issuer hereby covenants and agrees with the Indenture Trustee for the benefit of the Indenture Trustee and the Holders of Notes as follows, so long as any Notes are Outstanding:
| (a) | the Issuer will duly and punctually pay or cause to be paid when due to every Holder of Notes the principal of, and premium, interest (subject to Issuer’s Deferral Right as provided for herein) and other amounts on, the Notes; and |
| (b) | the Issuer and each Restricted Subsidiary will preserve and maintain its existence (except as permitted by Article 11 of the Base Indenture), and shall also maintain its qualifications in each jurisdiction to carry on its business except to the extent that failure to maintain such qualifications would not be reasonably expected to have a Material Adverse Effect with respect to such Notes. |
| 4.03 | Compliance Certificate |
The Issuer will deliver to the Indenture Trustee within 140 days after the end of each fiscal year of the Issuer a Certificate of the Issuer stating that, as of the end of such fiscal year, the Issuer was in compliance in all material respects with all covenants and other requirements contained in the Supplemented Indenture, or giving particulars of any such non-compliance.
| 4.04 | Financial Statements |
The Issuer will deliver to the Indenture Trustee within 140 days after the end of each fiscal year of the Issuer audited consolidated financial statements of the Issuer for such fiscal year including the consolidated balance sheet and statements of income, retained earnings and cash flow and within 60 days after the end of each fiscal quarter, other than the last fiscal quarter of each fiscal year, unaudited consolidated financial statements of the Issuer for such fiscal quarter consisting of a consolidated balance sheet and consolidated statements of income, retained earnings and cash flow.
| 4.05 | Agents’ Fees and Expenses |
The Issuer will pay such fees as are agreed upon in writing between the Issuer and the Indenture Trustee and all reasonable expenses, disbursements and advances incurred or made by the Indenture Trustee in the administration or execution of the trusts created by the Supplemented Indenture (including the reasonable compensation and the disbursements of its counsel and all other advisers and assistants not regularly in its employ), both before and after any Default or Event of Default with respect to the Notes until all its duties shall be finally and fully performed, except any such expense, disbursement or advance as may arise from or in connection with the dishonesty, bad faith, wilful misconduct, gross negligence or reckless disregard of any duty by the Indenture Trustee, or the failure to comply with the standard of care referred to in Section 8.01 of the Base Indenture.
| 4.06 | Indenture Trustee May Perform Covenants |
If the Issuer shall fail to perform any of its covenants set forth herein, the Indenture Trustee may in its discretion, but (subject to Section 6.02 of this Series Supplement or unless provided to the contrary in the Indenture) need not, notify the Holders of such failure, and itself may perform any such covenant that is capable of being performed by it, and if any such performance requires the payment of money, it may make such payment with its own funds or with money borrowed by it for such purpose, but shall be under no obligation to do so; provided however that no such performance or payment by the Indenture Trustee shall be deemed to release the Issuer from, the Issuer’s failure to perform its applicable covenant and any amounts so paid or expended by the Indenture Trustee shall be immediately repaid to the Indenture Trustee by the Issuer and shall bear interest until so repaid at a rate of interest that is 5% per annum above the highest rate of interest chargeable from time to time by the Indenture Trustee to its corporate trust customers.
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ARTICLE
FIVE
SUBORDINATION OF NOTES
| 5.01 | Notes Subordinated to Senior Indebtedness |
| (a) | The Issuer covenants and agrees, and each Holder of Notes, by the acceptance thereof, likewise covenants and agrees, that the indebtedness represented by the Notes and the payment of the principal, premium (if any), and interest on each and all of the Notes is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of Senior Indebtedness. |
| (b) | The Issuer covenants and agrees that Section 4.04(2) and 4.04(3) of the Base Indenture shall not apply to the Notes and each Holder of Notes, by the acceptance thereof, likewise covenants and agrees that Sections 4.04(2) and 4.04(3) of the Base Indenture shall not apply to the Notes. |
| (c) | In the event (i) of any insolvency or bankruptcy proceedings or any receivership, liquidation, reorganization or other similar proceedings in respect of the Issuer or a substantial part of its property, or of any proceedings for liquidation, dissolution or other winding up of the Issuer, whether or not involving insolvency or bankruptcy, or (ii) subject to the provisions of Section 5.02 that (A) a default shall have occurred with respect to the payment of principal of or interest on or other monetary amounts due and payable on any Senior Indebtedness (without giving effect to any cure period with respect thereto), or (B) there shall have occurred an event of default (other than a default in the payment of principal or interest or other monetary amounts due and payable) in respect of any Senior Indebtedness, as defined therein or in the instrument under which the same is outstanding, permitting the holder or holders thereof to accelerate the maturity thereof (with notice or lapse of time, or both), and such event of default shall have continued beyond the period of grace, if any, in respect thereof, and, in the cases of subclauses (A) and (B) of this clause (c)(ii) such default or event of default shall not have been cured or waived or shall not have ceased to exist, or (iii) that the principal of the Notes shall have been declared due and payable pursuant to the Supplemented Indenture and such declaration shall not have been rescinded and annulled as provided in the Supplemented Indenture, then: |
| (i) | the holders of all Senior Indebtedness shall first be entitled to receive payment of the full amount due thereon, or provision shall be made for such payment in money or money’s worth, before the Holders of any of the Notes are entitled to receive a payment on account of the principal of or interest or premium (if any) on, the indebtedness evidenced by the Notes, including, without limitation, any payments made pursuant to any redemption or purchase for cancellation; |
| (ii) | any payment by, or distribution of assets of, the Issuer of any kind or character, whether in cash, property or securities, to which the Holders of any of the Notes or the Indenture Trustee would be entitled except for the provisions of this Article shall be paid or delivered by the person making such payment or distribution, whether a Custodian or otherwise, directly to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of such Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness, before any payment or distribution is made to the Holders of the Notes or to the Indenture Trustee under the Supplemented Indenture; and |
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| (iii) | in the event that, notwithstanding the foregoing, any payment by, or distribution of assets of, the Issuer of any kind or character, whether in cash, property or securities, in respect of principal of or interest or premium (if any) on the Notes or in connection with any redemption or purchase for cancellation by the Issuer of the Notes, shall be received by the Indenture Trustee or the Holders of any of the Notes before all Senior Indebtedness is paid in full, or provision made for such payment in money or money’s worth, such payment or distribution in respect of principal of or interest or premium (if any) on, the Notes or in connection with any redemption or purchase for cancellation by the Issuer of the Notes shall be paid over to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any such Senior Indebtedness may have been issued, ratably as aforesaid, for application to the payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness. |
| 5.02 | Disputes with Holder of Certain Senior Indebtedness |
Any failure by the Issuer to make any payment on or perform any other obligation under Senior Indebtedness, other than any indebtedness incurred by the Issuer or assumed or guaranteed, directly or indirectly, by the Issuer for money borrowed (or any deferral, renewal, extension or refunding thereof) or any indebtedness or obligation as to which the provisions of this Section 5.02 shall have been waived by the Issuer in the instrument or instruments by which the Issuer incurred, assumed, guaranteed or otherwise created such indebtedness or obligation, shall not be deemed a default or event of default under Section 5.01(c)(ii) of this Series Supplement if (a) the Issuer shall be disputing its obligation to make such payment or perform such obligation and (b) either (i) no final judgment relating to such dispute shall have been issued against the Issuer which is in full force and effect and is not subject to further review, including a judgment that has become final by reason of the expiration of the time within which a party may seek further appeal or review, or (ii) in the event of a judgment that is subject to further review or appeal has been issued, the Issuer shall in good faith be prosecuting an appeal or other proceeding for review and a stay of execution shall have been obtained pending such appeal or review.
| 5.03 | Subrogation |
Subject to the payment in full of all Senior Indebtedness, the Holders of the Notes shall be subrogated (equally and ratably with the holders of all obligations of the Issuer which by their express terms are subordinated to Senior Indebtedness of the Issuer to the same extent as the Notes are subordinated and which are entitled to like rights of subrogation) to the rights of Senior Creditors to receive payments or distributions of cash, property or securities of the Issuer applicable to the Senior Indebtedness until all amounts owing on the Notes shall be paid in full, and as between the Issuer, its creditors other than Senior Creditors and the Holders, no such payment or distribution made to the Senior Creditors by virtue of this Article that otherwise would have been made to the Holders of Notes shall be deemed to be a payment by the Issuer on account of such Senior Indebtedness, it being understood that the provisions of this Article are intended solely for the purpose of defining the relative rights of the Holders, on the one hand, and the Senior Creditors, on the other hand.
| 5.04 | Obligation of Issuer Unconditional |
| (a) | Nothing contained in this Article or elsewhere in the Supplemented Indenture or in the Notes is intended to or shall impair, as among the Issuer, its creditors (other than the Senior Creditors) and the Holders of Notes, the obligation of the Issuer, which is absolute and unconditional, to pay to the Holders of Notes the principal of and interest on the Notes as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of Notes and creditors of the Issuer other than the Senior Creditors, nor shall anything herein or therein prevent the Indenture Trustee or any Holder of Notes from exercising all remedies otherwise permitted by Applicable Law upon default under the Supplemented Indenture, subject to the rights, if any, under this Article of the Senior Creditors in respect of cash, property or securities of the Issuer received upon the exercise of any such remedy. |
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| (b) | Upon payment or distribution of assets of the Issuer referred to in this Article, the Indenture Trustee and the Holders of Notes shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which any such dissolution, winding up, liquidation or reorganization proceeding affecting the affairs of the Issuer is pending or upon a certificate of any Custodian making any payment or distribution, delivered to the Indenture Trustee or to the Holders of Notes, for the purpose of ascertaining the persons entitled to participate in such payment or distribution, the Senior Creditors and the holders of other indebtedness of the Issuer, the amount thereof or payable thereon, the amount paid or distributed thereon and all other facts pertinent thereto or to this Article. |
| 5.05 | Effectuation of Subordination by Indenture Trustee; Waiver of Conflicts |
| (1) | Each Holder of Notes by its acceptance thereof authorizes and directs the Indenture Trustee on its behalf to take such action as may be necessary or appropriate to effect the subordination as provided in this Article and appoints the Indenture Trustee as its attorney-in-fact for any and all such purposes. This appointment shall be irrevocable. Upon request of the Issuer, and upon being funded, indemnified and furnished a Certificate of the Issuer stating that one or more named Persons are Senior Creditors and specifying the amount and nature of the Senior Indebtedness of such Senior Creditor, the Indenture Trustee shall enter into a written agreement or agreements with the Issuer and the Persons named in such Certificate of the Issuer providing that such Persons are entitled to all the rights and benefits of this Article as Senior Creditors, and, if requested by such Senior Creditors, providing that the provisions of this Article and the definitions used herein will not be amended without the consent of such Senior Creditors. Such agreement shall be conclusive evidence that the indebtedness specified therein is Senior Indebtedness; however, nothing herein shall impair the rights of any Senior Creditor who has not entered into such an agreement. |
| (2) | The Issuer and each Holder of Notes (by its acceptance thereof) acknowledge that the Indenture Trustee acts, and may in the future act, as trustee with respect to Senior Indebtedness and hereby waive any material conflict that may arise from such appointment. Notwithstanding anything else in the Supplemented Indenture (including, but not limited to, Article Six of the Base Indenture (as amended by this Series Supplement)), the Holders may not direct the Indenture Trustee to take any action to enforce the payment of the principal of (or premium, if any) or interest on the Notes unless and until the Issuer has been fully released and discharged from its obligations under the Senior Indebtedness by the Senior Creditors. |
| 5.06 | Knowledge of Indenture Trustee |
Notwithstanding the provisions of this Article or any other provisions of the Supplemented Indenture, the Indenture Trustee shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of moneys to or by the Indenture Trustee, or the taking of any other action by the Indenture Trustee, unless and until the Indenture Trustee shall have received written notice thereof mailed or delivered to the Indenture Trustee from the Issuer, any Holder of Notes, any paying agent or the holder or representative of any class of Senior Indebtedness.
| 5.07 | Indenture Trustee May Hold Senior Indebtedness |
The Indenture Trustee shall be entitled to all the rights set forth in this Article with respect to any Senior Indebtedness at the time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in the Supplemented Indenture shall deprive the Indenture Trustee of any of its rights as such holder.
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| 5.08 | Rights of Holders of Senior Indebtedness Not Impaired |
| (a) | No right of any present or future holder of any Senior Indebtedness to enforce the subordination herein shall at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the Issuer or by any noncompliance by the Issuer with the terms, provisions and covenants of the Supplemented Indenture, regardless of any knowledge thereof any such holder may have or be otherwise charged with. |
| (b) | With respect to the holders of Senior Indebtedness, (i) the duties and obligations of the Indenture Trustee shall be determined solely by the express provisions of the Supplemented Indenture, (ii) the Indenture Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in the Supplemented Indenture, (iii) no implied covenants or obligations shall be read into the Supplemented Indenture against the Indenture Trustee and (iv) the Indenture Trustee shall not be deemed to be a fiduciary as to such holders. |
| 5.09 | Article Applicable to Paying Agents |
In case at any time any Paying Agent other than the Indenture Trustee shall have been appointed by the Issuer and be then acting hereunder, the term Indenture Trustee as used in this Article shall in such case (unless the context shall require otherwise) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in addition to or in place of the Indenture Trustee; provided, however, that Sections 5.06 and 5.07 of this Series Supplement shall not apply to the Issuer if it acts as its own Paying Agent.
| 5.10 | Indenture Trustee; Compensation Not Prejudiced |
Nothing in this Article shall apply to claims of, or payments to, the Indenture Trustee pursuant to Section 4.05 of this Series Supplement.
ARTICLE SIX
EVENTS OF DEFAULT AND REMEDIES
| 6.01 | Events of Default |
Notwithstanding anything in the Indenture to the contrary and solely with respect to the Notes (and not with respect to any other securities issued or outstanding under the Base Indenture), for so long as any of the Notes remain outstanding, “Event of Default” means any one of the following events (whatever the reason for such Event of Default and whether it shall be occasioned by provisions of Article Six of this Series Supplement or be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):
| (a) | the Issuer defaults in the payment of the principal of or any premium on the Notes at the Stated Maturity or the Redemption Price for the Notes when due; |
| (b) | the Issuer defaults in the payment of any interest upon the Notes when it becomes due and payable, and continuance of such default for a period of 30 days (subject to the Issuer’s Deferral Right); |
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| (c) | the Issuer pursuant to or under or within the meaning of Bankruptcy Law: |
| (i) | commences a voluntary case or proceeding; |
| (ii) | consents to the entry of a Bankruptcy Order in an involuntary case or proceeding or the commencement of any case against it; |
| (iii) | consents to the appointment of a Custodian of it or for any substantial part of its property; |
| (iv) | makes a general assignment for the benefit of its creditors or files a proposal or other scheme of arrangement involving the rescheduling or composition of its indebtedness; |
| (v) | files a petition in bankruptcy or an answer or consent seeking reorganization or relief; or |
| (vi) | consents to the filing of such petition in bankruptcy or the appointment of or taking possession by a Custodian; |
| (d) | a court of competent jurisdiction in any involuntary case or proceeding enters a Bankruptcy Order against the Issuer, and such Bankruptcy Order remains unstayed and in effect for 60 consecutive days; or |
| (e) | a Custodian shall be appointed out of court with respect to the Issuer, or with respect to all or any substantial part of the property of the Issuer and, if the Issuer shall be contesting such appointment in good faith, such appointment continues for 90 consecutive days. |
| 6.02 | Acceleration of Maturity; Rescission and Annulment |
Solely with respect to the Notes:
| (1) | If an Event of Default under subsection 6.01(a) or 6.01(b) occurs and is continuing with respect to the Notes, then and in every such case the Indenture Trustee may, in its discretion, and shall upon the request of Holders of not less than 25% in aggregate principal amount of the Notes then Outstanding, declare the principal of all such Notes to be due and payable immediately, by a notice in writing to the Issuer (and to the Indenture Trustee if given by Holders), and upon any such declaration such principal, together with all accrued and unpaid interest (including Deferred Interest, if any) to, but excluding, such date and any other amounts owing with respect thereto, shall immediately become due and payable. |
| (2) | If an Event of Default under subsection 6.01(c), 6.01(d) or 6.01(e) occurs and is continuing, the principal amount of the Notes then Outstanding will become immediately due and payable, together with all accrued and unpaid interest (including Deferred Interest, if any) to, but excluding, such date, and any other amounts owing with respect thereto without any declaration or other act on the part of the Indenture Trustee or any Holder of Notes. |
ARTICLE SEVEN
MISCELLANEOUS PROVISIONS
| 7.01 | Confirmation of Indenture |
The Indenture, as amended and supplemented by this Series Supplement, is in all respects confirmed.
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| 7.02 | Acceptance of Trusts |
The Indenture Trustee hereby accepts the trusts in this Series Supplement declared and provided for and agrees to perform the same upon the terms and conditions and subject to the provisions set forth in the Indenture.
| 7.03 | Counterparts and Formal Date |
This Series Supplement may be executed in any number of counterparts, and delivered via electronic means (including by way of pdf), each of which so executed and delivered shall be deemed to be an original, but all of which shall together constitute one and the same instrument and notwithstanding their date of execution shall be deemed to bear the date set forth on the first page of this Series Supplement.
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IN WITNESS OF WHICH the Issuer and the Indenture Trustee have caused this Series Supplement to be duly executed by their duly authorized officers as of the date specified on the first page of this Series Supplement.
| COMPUTERSHARE TRUST COMPANY OF CANADA | TELUS CORPORATION | |||||
| by: | “Luci Scholes” | by: | “Doug French” | |||
| Name: | Luci Scholes | Name: | Doug French | |||
| Title: | Corporate Trust Officer | Title: | Executive Vice-President and Chief Financial Officer | |||
| by: | “Corentin Leverrier” | by: | “Mario Mele” | |||
| Name: | Corentin Leverrier | Name: | Mario Mele | |||
| Title: | Manager, Corporate Trust | Title: | Senior Vice-President and Treasurer | |||
EXECUTION PAGE – SUPPLEMENTAL INDENTURE
EXHIBIT A TO FIFTY-THIRD SERIES SUPPLEMENT
TELUS CORPORATION
| No. | · | $ · |
| CUSIP No. | 87971MCK7 |
| ISIN No. | CA87971MCK77 |
6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055
TELUS Corporation (the “Issuer”) for value received hereby acknowledges itself indebted and promises to pay to the Holder hereof on presentation and surrender of this 6.75% Fixed-to-Fixed Rate Junior Subordinated Note, Series CAS (the “Note”) at the principal office of Computershare Trust Company of Canada (the “Indenture Trustee”, which term shall include its successors under the Indenture hereinafter referred to) in Calgary, Alberta, Canada, the principal amount of · dollars in lawful money of Canada ($·), and to pay interest on the outstanding principal amount hereof at the same place in like money (i) from, and including, April 21, 2025 to, but excluding, the First Reset Date at a rate of 6.75% per annum, and thereafter (ii) from, and including, each Interest Reset Date with respect to each Interest Reset Period to, but excluding, the next succeeding Interest Reset Date, the Stated Maturity or the Redemption Date, as the case may be, at a rate per annum equal to the Five Year Government of Canada Yield as of the most recent Interest Reset Determination Date plus a spread of 3.609%, to be reset on each Interest Reset Date; provided, that the interest rate will not reset below 6.75%, as well after as before maturity, default and judgment, with interest on overdue interest at the same rate as more particularly specified in the Indenture.
The outstanding principal amount of this Note is payable in one instalment on July 21, 2055. Subject to the Issuer’s right to defer interest payments as provided for in the Indenture (the “Deferral Right”), interest on this Note that accrues for the period from, and including, April 21, 2025 to, but excluding, January 21, 2026 is payable on the first Interest Payment Date (namely, January 21, 2026) in an aggregate amount equal to $·, and interest on this Note that accrues from and including January 21, 2026 is payable in arrears in equal semi-annual instalments on January 21 and July 21 of each year beginning January 21, 2026. All accrued and unpaid interest on this Note is payable on the Stated Maturity.
All payments made by the Issuer under or with respect to this Note will be made free and clear of and without withholding or deduction for or on account of any present or future tax, duty, levy, impost, assessment or other governmental charge imposed or levied by or on behalf of the Government of Canada or of any province or territory thereof or therein or by any authority or agency thereof or therein having power to tax (hereinafter “Taxes”) unless the Issuer is required to withhold or deduct Taxes by Applicable Law or by the interpretation or administration thereof by the relevant Governmental Authority.
This Note is one of a duly authorized Series of Debt Securities designated as 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 issued under a trust indenture dated as of May 22, 2001 (the “Base Indenture”) as amended and supplemented by the forty-seventh supplement to the Base Indenture, dated January 2, 2024 (the “Forty-Seventh Supplement”) and a fifty-third series supplement (the “Series Supplement”) dated as of April 21, 2025 (the Series Supplement, together with the Base Indenture and the Forty-Seventh Supplement, and as further amended, the “Indenture”), in each case between the Issuer and the Indenture Trustee. Reference is hereby made to the Indenture as to the nature and extent of the rights of the Holders of the Debt Securities of this Series, all to the same effect as if the provisions of the Indenture were herein set forth, to all of which provisions the Holder of this Note by acceptance hereof assents. All capitalized terms used but not defined herein have the meanings specified in the Indenture.
So long as no Event of Default has occurred and is continuing, the Issuer may elect, at its sole option, at any date other than an Interest Payment Date, to defer the interest payable on the Notes on one or more occasions for up to five consecutive years (a “Deferral Period”). Such deferral will not constitute an Event
of Default or any other breach under the Indenture. Any instalment of interest whose payment is deferred pursuant to the Deferral Right (“Deferred Interest”) will accrue, compounding on each subsequent Interest Payment Date, until paid, to the extent permitted by law. A Deferral Period terminates on any Interest Payment Date where the Issuer pays all accrued and unpaid interest on such date. No Deferral Period may extend beyond the Stated Maturity and, for greater certainty, all accrued and unpaid interest (including any Deferred Interest) shall be due and payable at the Stated Maturity or the Redemption Date, as the case may be. There shall be no limit on the number of Deferral Periods that may occur.
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Each Debt Security of this Series, including this Note, may be redeemed by the Issuer, at its option and without the consent of any Holder, in whole or at any time in part from time to time on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holders, (i) on any day in the period commencing on and including the date that is 90 days prior to the First Reset Date and ending on and including the First Reset Date, and (ii) after the First Reset Date, on any Interest Payment Date, in each case, in accordance with the Indenture and at a Redemption Price equal to 100% of the principal amount of this Note redeemed, together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date.
In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem this Note in whole, but not in part, at any time within 90 days following the occurrence of a Tax Event at a Redemption Price equal to 100% of the outstanding principal amount of this Note together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date.
In addition, the Issuer may, at its option and without the consent of any Holder, on giving not more than 60 days’ nor less than 10 days’ prior notice to the Holder, redeem this Note in whole, but not in part at any time within 90 days following the occurrence of a Rating Event at a Redemption Price equal to 102% of the outstanding principal amount of this Note together with accrued and unpaid interest (including Deferred Interest, if any) thereon to, but excluding, the Redemption Date
At the Issuer’s discretion, any redemption (including any redemption pursuant to a Tax Event or Rating Event) may be subject to one or more conditions precedent, and any such conditional redemption may be revoked in the event that any or all of such conditions have not been satisfied or waived by the Redemption Date.
The outstanding principal amount of this Note may become or be declared to be due and payable by the Indenture Trustee before maturity in the circumstances set out in the Indenture.
This Note is transferable only in accordance with the provisions of the Indenture and subject to the last two sentences of this paragraph. No transfer of this Note shall be valid unless made on the Register kept by and at the principal office of the Registrar in Calgary, Alberta, by the Holder hereof or its attorney duly appointed by instrument in writing in form and execution satisfactory to the Registrar upon compliance with such reasonable requirements as the Registrar may prescribe. Except as otherwise provided in the Indenture, this Note may be transferred, in whole but not in part, only to another nominee of the Depositary for the 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 or to a successor Depositary or to a nominee of such successor Depositary. Unless this certificate is presented by an authorized representative of CDS Clearing and Depository Services Inc. (“CDS”) to TELUS Corporation (the “Issuer”) or its agent for registration of transfer, exchange or payment, and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such other name as is requested by an authorized representative of CDS (and any payment is made to CDS & CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered holder hereof, CDS & CO., has a property interest in the securities represented by this certificate herein and it is a violation of its rights for another person to hold, transfer or deal with this certificate.
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The Indenture contains provisions making binding upon all Holders of the Debt Securities of this Series, or upon the Holders of all Series outstanding under the Indenture, certain Holder Actions taken by the Holders of a specified majority of the Debt Securities of this Series, or of all Series, as the case may be, then outstanding.
This Note shall not become obligatory for any purpose until certified by the Indenture Trustee.
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IN WITNESS OF WHICH TELUS Corporation has caused this 6.75% Fixed-to-Fixed Rate Junior Subordinated Note, Series CAS due July 21, 2055 to be signed by its duly authorized officer on ·.
| TELUS CORPORATION | |||
| by: | |||
| Name: | Doug French | ||
| Title: | Executive Vice-President and Chief Financial Officer | ||
EXECUTION PAGE – GLOBAL NOTE
INDENTURE TRUSTEE’S CERTIFICATE
This 6.75% Fixed-to-Fixed Rate Junior Subordinated Note, Series CAS due July 21, 2055 is one of the 6.75% Fixed-to-Fixed Rate Junior Subordinated Notes, Series CAS due July 21, 2055 referred to in the Indenture (CUSIP No. 87971MCK7).
| COMPUTERSHARE TRUST COMPANY OF CANADA | ||
| by: | ||
| Authorized Signing Officer | ||
(Form of Registration Panel)
(No writing hereon except by the Indenture Trustee)
| Date of Registration | In Whose name Registered | Authorized Signature of Indenture Trustee | ||||||||