Telus offers bond issue to pay off other bond issue

Canadian Business: Telus announces offering of up to $1 billion in unsecured notes
VANCOUVER (CP) - Telus Corp. (TSX:T) said it plans to raise up to $1 billion in unsecured notes to be used for general corporate purposes and the redemption of higher interest U.S.-dollar denominated debt.
The telephone company had initially announced plans to raise $800 million on Thursday morning, but increased the size of the offering to $1billion after strong demand from the market.
Telus said it will issue $300 million in five-year notes and another $700 million in 10-year notes.
The 4.5 per cent five-year notes were priced at $99.991 for an effective yield of 4.502 per cent, while the 4.95 per cent 10-year notes were priced at $99.953 for an effective yield of 4.956 per cent.
The notes will be offered through a syndicate of agents led by TD Securities Inc.
Closing of the offerings is expected by March 13.

Point of interest for casual observers: when individuals take out a new credit card to pay the balance owning on an existing credit card, that's not okay. When institutions offer a fixed-income debt instrument to pay off their obligations on a prior fixed-income debt instrument, that's okay.

"Strong demand from the market" = "Shit, we need more liquidity!" This is the corporate equivalent of sitting down in the nice office of the neighborhood CitiFinancial branch and being told by the nice girl there "You asked for a $15,000 debt consolidation loan. But you've been pre-approved for $20,000. Wouldn't you like some extra money to fix things up around the house?" and going along with it.

What am I implying? I don't know...

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