TELUS (TU) said Wednesday it priced a $1.5 billion offering of fixed-to-fixed rate junior subordinated notes in two tranches due 2055.

The company said $700 million Series A notes will carry an initial interest rate of 6.625%, resetting every five years starting Oct. 15, 2030, based on the five-year US Treasury rate plus 2.769%, with a minimum rate of 6.625%.

The $800 million Series B notes will bear an initial rate of 7%, resetting every five years from Oct. 15, 2035, at the Treasury rate plus 2.709%, with a floor of 7%, the company added.

TELUS said it plans to use the proceeds from the offering, expected to close on Friday, to fund previously announced tender offers and any remaining funds may be used to repay debt or for general corporate purposes.