long-term debt (Tables)

6 Months Ended

Jun. 30, 2020


		June 30,		December 31,
As at (millions)	Note	2020		2019
Senior unsecured
TELUS Corporation senior notes	(b)	$	14,729	$	14,479
TELUS Corporation commercial paper	(c)		—		1,015
TELUS Communications Inc. debentures			622		621
Secured
TELUS International (Cda) Inc. credit facility	(e)		1,167		431
Other			279		267
			16,797		16,813
Lease liabilities	(f)		1,721		1,661
Long-term debt		$	18,518	$	18,474
Current		$	562	$	1,332
Non-current			17,956		17,142
Long-term debt		$	18,518	$	18,474

Schedule of long-term debt maturities




Composite long-term debt																	Other
denominated in	Canadian dollars						U.S. dollars										currencies
	Long-term						Long-term
	debt,						debt,				Currency swap agreement
Years ending December 31	excluding		Leases				excluding		Leases		amounts to be exchanged						Leases
(millions)	leases		(Note 19)		Total		leases		(Note 19)		(Receive) 1		Pay		Total		(Note 19)		Total
2020 (remainder of year)	$	7	$	144	$	151	$	18	$	11	$	(14)	$	14	$	29	$	23	$	203
2021		188		267		455		36		23		(28)		28		59		44		558
2022		1,263		144		1,407		36		22		(28)		28		58		34		1,499
2023		529		122		651		36		18		(28)		28		54		29		734
2024		1,115		110		1,225		36		8		(28)		28		44		23		1,292
2025-2029		4,686		299		4,985		2,516		15		(1,935)		1,907		2,503		46		7,534
Thereafter		4,788		301		5,089		1,704		1		(1,703)		1,646		1,648		20		6,757
Future cash outflows in respect of composite long-term debt principal repayments		12,576		1,387		13,963		4,382		98		(3,764)		3,679		4,395		219		18,577
Future cash outflows in respect of associated interest and like carrying costs 2		6,452		375		6,827		2,672		19		(2,575)		2,409		2,525		49		9,401
Undiscounted contractual maturities (Note 4(b))	$	19,028	$	1,762	$	20,790	$	7,054	$	117	$	(6,339)	$	6,088	$	6,920	$	268	$	27,978

(1)

Where applicable cash flows reflect foreign exchange rates as at June 30, 2020.

(2)

Future cash outflows in respect of associated interest and like carrying costs for commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect as at June 30, 2020.

TELUS Corporation senior notes

long-term debt

Schedule of long-term debt maturities


										Principal face amount						Redemption present
								Effective					Outstanding at			value spread
					Issue			interest		Originally			financial			Basis		Cessation
Series	Issued		Maturity		price			rate 1		issued			statement date			points		date
3.60% Notes, Series CM	November 2013		January 2021	2	$	997.15		3.65	%	$	400	million	$	NIL		35	3	N/A
3.20% Notes, Series CO	April 2014		April 2021	2	$	997.39		3.24	%	$	500	million	$	NIL		30	3	Mar. 5, 2021
2.35% Notes, Series CT	March 2015		March 2022		$	997.31		2.39	%	$	1.0	billion	$	1.0	billion	35.5	3	Feb. 28, 2022
3.35% Notes, Series CJ	December 2012		March 2023		$	998.83		3.36	%	$	500	million	$	500	million	40	3	Dec. 15, 2022
3.35% Notes, Series CK	April 2013		April 2024		$	994.35		3.41	%	$	1.1	billion	$	1.1	billion	36	3	Jan. 2, 2024
3.75% Notes, Series CQ	September 2014		January 2025		$	997.75		3.78	%	$	800	million	$	800	million	38.5	3	Oct. 17, 2024
3.75% Notes, Series CV	December 2015		March 2026		$	992.14		3.84	%	$	600	million	$	600	million	53.5	3	Dec. 10, 2025
2.75% Notes, Series CZ	July 2019		July 2026		$	998.73		2.77	%	$	800	million	$	800	million	33	3	May 8, 2026
2.80% U.S. Dollar Notes 4	September 2016		February 2027		US$	991.89		2.89	%	US$	600	million	US$	600	million	20	5	Nov. 16, 2026
3.70% U.S. Dollar Notes 4	March 2017		September 2027		US$	998.95		3.71	%	US$	500	million	US$	500	million	20	5	June 15, 2027
2.35% Notes, Series CAC	May 2020		January 2028		$	997.25		2.39	%	$	600	million	$	600	million	48	3	Nov. 27, 2027
3.625% Notes, Series CX	March 2018		March 2028		$	989.49		3.75	%	$	600	million	$	600	million	37	3	Dec. 1, 2027
3.30% Notes, Series CY	April 2019		May 2029		$	991.75		3.40	%	$	1.0	billion	$	1.0	billion	43.5	3	Feb. 2, 2029
3.15% Notes, Series CAA	December 2019		February 2030		$	996.49		3.19	%	$	600	million	$	600	million	39.5	3	Nov. 19, 2029
4.40% Notes, Series CL	April 2013		April 2043		$	997.68		4.41	%	$	600	million	$	600	million	47	3	Oct. 1, 2042
5.15% Notes, Series CN	November 2013		November 2043		$	995.00		5.18	%	$	400	million	$	400	million	50	3	May 26, 2043
4.85% Notes, Series CP	Multiple	6	April 2044		$	987.91	6	4.93	% 6	$	500	million 6	$	900	million 6	46	3	Oct. 5, 2043
4.75% Notes, Series CR	September 2014		January 2045		$	992.91		4.80	%	$	400	million	$	400	million	51.5	3	July 17, 2044
4.40% Notes, Series CU	March 2015		January 2046		$	999.72		4.40	%	$	500	million	$	500	million	60.5	3	July 29, 2045
4.70% Notes, Series CW	Multiple	7	March 2048		$	998.06	7	4.71	% 7	$	325	million 7	$	475	million 7	58.5	3	Sept. 6, 2047
4.60% U.S. Dollar Notes 4	June 2018		November 2048		US$	987.60		4.68	%	US$	750	million	US$	750	million	25	5	May 16, 2048
4.30% U.S. Dollar Notes 4	May 2019		June 2049		US$	990.48		4.36	%	US$	500	million	US$	500	million	25	5	Dec. 15, 2048
3.95% Notes, Series CAB	Multiple	8	February 2050		$	997.54	8	3.97	% 8	$	400	million 8	$	800	million 8	57.5	3	Aug. 16, 2049

(1)

The effective interest rate is that which the notes would yield to an initial debt holder if held to maturity.

(2)

On May 22, 2020, we exercised our right to early redeem, on June 23, 2020, all of our 3.60% Notes, Series CM and all of our 3.20% Notes, Series CO. The long-term debt prepayment premium recorded in the three-month period ended June 30, 2020, was $18 million before income taxes (see Note 9).

(3)

The redemption price is equal to the greater of (i) the present value of the notes discounted at the Government of Canada yield plus the redemption present value spread calculated over the period to maturity, other than in the case of the Series CT, Series CU, Series CV, Series CW, Series CX, Series CY, Series CZ, Series CAA, Series CAB and Series CAC notes, for which it is calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof.

(4)

We have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively converted the principal payments and interest obligations to Canadian dollar obligations as follows:


			Canadian
	Interest rate		dollar equivalent		Exchange
Series	fixed at		principal		rate
2.80% U.S. Dollar Notes	2.95	%	$	792 million	$	1.3205
3.70% U.S. Dollar Notes	3.41	%	$	667 million	$	1.3348
4.60% U.S. Dollar Notes	4.41	%	$	974 million	$	1.2985
4.30% U.S. Dollar Notes	4.27	%	$	672 million	$	1.3435

(5)

The redemption price is equal to the greater of (i) the present value of the notes discounted at the U.S. Adjusted Treasury Rate plus the redemption present value spread calculated over the period to the redemption present value spread cessation date, or (ii) 100% of the principal amount thereof.

(6)

$500 million of 4.85% Notes, Series CP were issued in April 2014 at an issue price of $998.74 and an effective interest rate of 4.86%. This series of notes was reopened in December 2015 and a further $400 million of notes were issued at an issue price of $974.38 and an effective interest rate of 5.02%.

(7)

$325 million of 4.70% Notes, Series CW were issued in March 2017 at an issue price of $990.65 and an effective interest rate of 4.76%. This series of notes was reopened in February 2018 and a further $150 million of notes were issued at an issue price of $1,014.11 and an effective interest rate of 4.61% in March 2018.

(8)

$400 million of 3.95% Notes, Series CAB were issued in December 2019 at an issue price of $991.54 and an effective interest rate of 4.00%. This series of notes was reopened in May 2020 and a further $400 million of notes were issued at an issue price of $1,003.53 and an effective interest rate of 3.93%.

TELUS Corporation credit facility

long-term debt

Schedule of long-term debt maturities


	June 30,		December 31,
As at (millions)	2020		2019
Net available	$	2,250	$	1,235
Backstop of commercial paper		—		1,015
Gross available	$	2,250	$	2,250

TELUS International (Cda) Inc. credit facility

long-term debt

Schedule of long-term debt maturities

June 30, 2020

December 31, 2019

Revolving

Term loan

Revolving

Term loan

As at (millions)

component

component 1

Total

component

Total

Available

US$

204

US$

N/A

US$

204

US$

121

US$

N/A

US$

121

Outstanding

Due to other

347

518

865

229

107

336

Due to TELUS Corporation

123

N/A

US$

600

US$

592

US$

1,192

US$

350

US$

107

US$

457

(1)

We have entered into a receive-floating interest rate, pay-fixed interest rate exchange agreement that effectively converts our interest obligations on US$103 of the debt to a fixed rate of 2.64%.

Relative to amounts owed to the syndicate of financial institutions, excluding TELUS Corporation, we have entered into foreign exchange derivatives (cross currency interest rate exchange agreements) that effectively convert an amortizing amount of US$415 of the principal payments and associated interest obligations to European euro obligations with an effective fixed interest rate of 0.65% and an effective fixed economic exchange rate of US$1.0932:€1.00. These have been accounted for as a net investment hedge in a foreign operation (see Note 4).