Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
(FORMERLY BCT.TELUS COMMUNICATIONS INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1999
13. LONG-TERM DEBT (Continued)
requires either an annual sinking fund payment of 1% of the original principal amount of bonds outstanding
or the pledge of additional unmortgaged property in the amount of 1.5% of the principal. In 1999, a sinking
fund payment was made in respect of the Series AN First Mortgage Bonds.
(c) TELUS Communications (B.C.) Inc. Debentures
Debentures are issued under the Trust Indenture dated May 31, 1990 and are not secured by any mortgage,
pledge or other charge. While the Trust Indenture is in effect, further issues of first mortgage bonds are not
permitted. New issues of unsecured debt are subject to restrictions as to debt ratio and interest coverage as
defined in the Trust Indenture.
The outstanding debentures may not be redeemed prior to maturity.
The Series 4 Debentures were exchangeable, at the holder’s option, effective on April 8 of any year during
the four-year period from 1996 to 1999, for an equal principal amount of Series 5 Debentures. In 1999,
$20.3 million ($24.3 million — 1998) of the Series 4 Debentures were exchanged for Series 5 Debentures.
(d) TELUS Communications Inc. Debentures
The outstanding Series A Debentures and Series B Debentures are issued under the TELUS
Communications Inc. Trust Indenture dated August 24, 1994 and a supplemental trust indenture dated
September 22, 1995 relating to Series B Debentures only. These debentures are not secured by any
mortgage, pledge or other charge. During 1995 the Company terminated an interest rate swap contract
relating to the Series A Debentures and realized a gain on early termination in the amount of $16.8 million
which is being amortized and credited to interest expense over the remaining term of the Series A
Debentures. The amortization of the gain resulted in an effective rate of interest on Series A Debentures in
1999 of 8.79% (8.79% — 1998).
(e) TELUS Communications Inc. Notes Payable
The outstanding note is secured by sinking fund assets of the Company. In accordance with note terms, this
note requires annual sinking fund contributions of 1% of the principal amount outstanding until one year
prior to maturity. The note has an early redemption provision at the Company’s option on May 31, 2000 or
on any May 31 or November 30 thereafter prior to maturity. The Company intends to redeem the note in
the year 2000.
(f) Medium Term Note Program
Under the terms of the medium term note prospectus, a total of $2,400.0 million in medium term notes may
be issued prior to September 9, 2001. The notes will have maturities, interest rates and other features
determined at the time of issue.
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