Annual report - About TELUS

notes to consolidated financial statements
(e) 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 2000
of 8.79% (8.79% – 1999).
(f) TELUS Communications Inc. Notes Payable
The note outstanding at December 31, 1999, was 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 had 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 redeemed the note in May 2000.
(g) QuébecTel Group First Mortgage Bonds
The first mortgage bonds of all series are secured equally and rateably by an immovable hypothec and by a movable
hypothec charging specifically certain immovable and movable property of the subsidiary Québec-Téléphone, such as
land, buildings, equipment, apparatus, telephone lines, rights-of-way and similar rights as well as by an hypothec on all
of the movable and the immovable property, present and future of Québec-Téléphone.
(h) QuébecTel Group Medium-Term Note Program
The medium-term notes were issued under a trust indenture dated September 1, 1994, as amended and complemented
from time to time, and are unsecured and not redeemable prior to maturity. New issues of medium-term notes are
subject to restrictions as to debt ratio and interest coverage.
(i) Clearnet Communications Inc. Redeemable Senior Discount Notes
The notes are senior, unsecured obligations of Clearnet and rank equally in right of payment with all existing and future
unsecured, unsubordinated obligations of Clearnet and are senior in right of payment to all existing and future subordinated
indebtedness of Clearnet, but will be effectively subordinated to all existing and future obligations of Clearnet’s subsidiaries.
The indentures governing the notes contain certain covenants which, among other things, place limitations on the ability
of Clearnet and certain of its subsidiaries to: incur additional indebtedness; pay dividends or make any distribution on its
capital stock or make certain other restricted payments; make investments; issue guarantees; enter into transactions
with certain shareholders and affiliates; issue shares of subsidiaries; restrict the ability of subsidiaries to pay dividends;
enter into liens; enter into sale-leaseback transactions; sell certain assets; or consolidate, merge, amalgamate or sell all
or substantially all of its property and assets.
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