Annual report - About TELUS

notes to consolidated financial statements
general corporate purposes (Tranche A, known as the 364-Day Non-Revolving Bridge Facility, with $5 billion in available
credit); and to refinance existing and acquired indebtedness for general corporate purposes other than repayment of
Tranche A (Tranche B, known as the 364-Day Revolving Line of Credit with $1.25 billion in available credit).
Upon the acquisition of Clearnet, net proceeds from the bank credit facilities were applied to the retirement of outstanding
bank debt, the purchase of Clearnet shares, related Clearnet acquisition costs and the retirement of certain outstanding
debt owed by Clearnet such as the 14.75% Senior Discount Notes due December 15, 2005, the Lucent Credit Facilities
and the Mike Credit Facility. Interest rates on outstanding bank debt are based upon the public ratings from the U.S. credit
rating agencies of Standard & Poor’s and Moody’s. Bank debt can take one or more of the following forms: prime rate loans
in Canadian dollars; Bankers’ Acceptances in Canadian dollars; U.S. Base Rate Loans in U.S. dollars; London Interbank
Offered Rate Loans (LIBOR) in U.S. dollars; and Standby Letters of Credit in Canadian dollars or U.S. dollars only (Tranche B
only). Other key terms and conditions for these facilities include compliance to financial covenants, mandatory prepayment
under certain conditions and voluntary prepayments/cancellations. Additionally, the shares of TELUS’ major operating
subsidiaries have been pledged as security for this bank credit facility.
At December 31, 2000, the QuébecTel Group had lines of credit available at the banks’ prime rates of interest maturing
between February 1 and August 31, 2001, which covered the amount of $95.0 million authorized by its Board of Directors.
Used bank credit totaled $67.2 million at December 31, 2000. The average interest rate on short-term borrowings for the
QuébecTel Group was 7.2% in 2000.
13. LONG-TERM DEBT
(a) Details of Long-Term Debt
(millions) Series Rate Maturity 2000 1999
TELUS Communications (B.C.) Inc. First Mortgage Bonds
AN 10.5% June 2000 $ – $ 115.0
TELUS Communications (B.C.) Inc. Debentures
1 12.0% May 2010 50.0 50.0
2 11.90% November 2015 125.0 125.0
3 10.65% June 2021 175.0 175.0
4 9.15% April 2002 1.0 1.0
> 72
5 9.65% April 2022 249.0 249.0
600.0 600.0
TELUS Communications (B.C.) Inc. Medium-Term Note Debentures issued at
varying rates of interest up to 8.00% and maturing on various dates up to 2009 395.0 195.0
TELUS Communications Inc. Debentures
A 9.50% August 2004 200.0 200.0
B 8.80% September 2025 200.0 200.0
400.0 400.0
TELUS Communications Inc. Notes Payable
11.80% May 2003 – 150.0
QuébecTel Group First Mortgage Bonds
T 10.80% March 2003 30.0 –
U 11.50% July 2010 30.0 –
60.0 –
QuébecTel Group Medium-Term Notes
1 7.10% February 2007 70.0 –