BCE reports results of series AM and series AN preferred share conversions

Rhea-AI Summary

BCE announced the results of its preferred share conversions on March 31, 2021. A total of 42,423 Series AM Preferred Shares were converted to Series AN Preferred Shares, while 939,786 Series AN shares were converted back to Series AM. Post-conversion, there will be 10,439,978 Series AM and 1,054,722 Series AN shares outstanding. The Series AM shares will have a fixed quarterly dividend of 2.939%, while Series AN shares will have a floating dividend initially set at 0.53927% (2.163% annualized), based on T-Bill rates.

Positive

• Conversion of 42,423 Series AM to Series AN reflects shareholder interest in flexible dividends.
• Quarterly fixed dividend of 2.939% on Series AM shares provides attractive returns.

Negative

• Conversion resulted in a net decrease of fixed-rate shares, potentially affecting dividend stability.

MONTRÉAL, March 17, 2021 /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE) today announced that 42,423 of its 9,542,615 fixed-rate Cumulative Redeemable First Preferred Shares, Series AM ("Series AM Preferred Shares") have been tendered for conversion on March 31, 2021, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series AN ("Series AN Preferred Shares"). In addition, 939,786 of its 1,952,085 Series AN Preferred Shares have been tendered for conversion on March 31, 2021, on a one-for-one basis, into Series AM Preferred Shares. Consequently, on March 31, 2021, BCE will have 10,439,978 Series AM Preferred Shares and 1,054,722 Series AN Preferred Shares issued and outstanding. The Series AM Preferred Shares and the Series AN Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbols BCE.PR.M and BCE.PR.N, respectively.

The Series AM Preferred Shares will pay on a quarterly basis, for the five-year period beginning on March 31, 2021, as and when declared by the Board of Directors of BCE, a fixed quarterly cash dividend based on an annual dividend rate of 2.939%.

The Series AN Preferred Shares will continue to pay, for each quarterly period, as and when declared by the Board of Directors of BCE Inc., a quarterly floating cash dividend based on the T-Bill Rate for such quarterly period plus 2.09%, calculated in accordance with the articles of BCE. The floating dividend rate applicable to the Series AN Preferred Shares for the quarterly period beginning on March 31, 2021 is 0.53927% (annual rate of 2.163% based on a T-Bill Rate of 0.073%).

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

Media inquiries:

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

Investor inquiries:

Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca

View original content:http://www.prnewswire.com/news-releases/bce-reports-results-of-series-am-and-series-an-preferred-share-conversions-301249222.html

SOURCE Bell Canada

FAQ

What was the conversion rate for BCE's Series AM and Series AN Preferred Shares?

BCE converted 42,423 Series AM Preferred Shares to Series AN, while 939,786 Series AN shares were converted back to Series AM.

What is the dividend rate for BCE's Series AM Preferred Shares?

The Series AM Preferred Shares will pay a fixed quarterly dividend of 2.939%.

When will the new dividend rates for BCE's Preferred Shares take effect?

The new dividend rates will take effect on March 31, 2021.

How many Series AM and Series AN shares will be outstanding after the conversion on March 31, 2021?

After the conversion, there will be 10,439,978 Series AM shares and 1,054,722 Series AN shares outstanding.