BCE reports results of Series AI and AJ preferred share conversions

Rhea-AI Summary

BCE Inc. (TSX: BCE) announced the conversion results of its preferred shares on July 23, 2021. A total of 12,985 Series AI Cumulative Redeemable First Preferred Shares have been converted into Series AJ Preferred Shares, while 3,598,141 Series AJ shares have converted to Series AI. After conversion on August 1, 2021, there will be 9,535,040 Series AI and 4,464,960 Series AJ shares outstanding. Series AI will pay a fixed quarterly dividend of 3.39%, while Series AJ will feature a float-based monthly dividend calculated against the prime rate.

Positive

• Series AI shares will pay a fixed quarterly dividend of 3.39%, providing predictable returns for investors.
• The conversion allows investors to switch between fixed-rate and floating-rate options based on market conditions.

Negative

• None.

MONTREAL, July 23, 2021 /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE) today announced that 12,985 of its 5,949,884 fixed-rate Cumulative Redeemable First Preferred Shares, Series  AI ("Series AI Preferred Shares") have been tendered for conversion on August 1, 2021, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series AJ ("Series AJ Preferred Shares"). In addition, 3,598,141 of its 8,050,116 Series AJ Preferred Shares have been tendered for conversion on August 1, 2021, on a one-for-one basis, into Series AI Preferred Shares. Consequently, on August 1, 2021, BCE will have 9,535,040 Series AI Preferred Shares and 4,464,960 Series AJ Preferred Shares issued and outstanding. The Series AI Preferred Shares and the Series AJ Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbols BCE.PR.I and BCE.PR.J, respectively.

The Series AI Preferred Shares will pay on a quarterly basis, for the five-year period beginning on August 1, 2021, as and when declared by the Board of Directors of BCE, a fixed cash dividend based on an annual fixed dividend rate of 3.39%.

The Series AJ Preferred Shares will continue to pay a monthly floating adjustable cash dividend for the five-year period beginning on August 1, 2021, as and when declared by the Board of Directors of BCE. The monthly floating adjustable dividend for any particular month will continue to be calculated based on the prime rate for such month and using the Designated Percentage for such month representing the sum of an adjustment factor (based on the market price of the Series AJ Preferred Shares in the preceding month) and the Designated Percentage for the preceding month.

About BCE
BCE is Canada's largest communications company, providing advanced Bell broadband wireless, Internet, TV, media and business communications services. To learn more, please visit Bell.ca or BCE.ca.

Through Bell for Better, we are investing to create a better today and a better tomorrow by supporting the social and economic prosperity of our communities. This includes the Bell Let's Talk initiative, which promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's Talk Day and significant Bell funding of community care and access, research and workplace initiatives throughout the country. To learn more, please visit Bell.ca/LetsTalk.

Media inquiries:
Marie-Eve Francoeur
514-391-5263
marie-eve.francoeur@bell.ca 

Investor inquiries:
Investor Relations
1-800-339-6353
investor.relations@bell.ca

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SOURCE Bell Canada

FAQ

What is the significance of BCE's preferred share conversion on August 1, 2021?

The conversion affects both Series AI and Series AJ preferred shares, allowing shareholders to switch based on their investment strategies.

How many Series AI and Series AJ preferred shares will BCE have after August 1, 2021?

After the conversion, BCE will have 9,535,040 Series AI and 4,464,960 Series AJ preferred shares outstanding.

What dividend will Series AI preferred shares pay starting August 1, 2021?

Series AI preferred shares will pay a fixed quarterly dividend of 3.39% for the next five years.

How is the dividend for Series AJ preferred shares calculated?

The dividend for Series AJ is a monthly floating rate based on the prime rate and an adjustment factor calculated from the previous month's market price.