Vancouver-based Telus Corp. (TSX:T) has raised $700 million in an offering of senior unsecured notes.
The company said the offering's net proceeds will be used for general corporate purposes, including the repayment of outstanding debts under a 2007 credit facility and other commercial paper.
The company recently reported relatively flat revenue of $2.37 billion in its first quarter, which ended March 31. Earnings before income taxes, depreciation and amortization fell by 4.5% due mainly to what the company said was increased benefit pension plan expenses and restructuring costs. Quarterly earnings were also affected by lower than expected wireless operating performance.
However, the company's net income rose 10% to $322 million from $292 million due to favourable income tax-related adjustments of approximately $62 million. Excluding income tax-related adjustments in 2008 and 2009, net income was down 5% due to lower operating earnings.
In light of the worsening recession in Canada, Telus also projected lower earnings for 2009. Wireless and wireline revenue has been adjusted downward by $350 million.
In December, the company set revenue targets of $4.97 billion to $5.1 billion in wireless revenue for 2009 and a target of $5.05 billion to $5.17 billion for wireline revenue.
Telus' share price range during the past week: between $30.35 and $31.05; 52-week high: $48.87; 52-week low: $29.12.