BCE Inc.announced that 1,067,517 of its 11,397,196 fixed-rate Cumulative Redeemable First Preferred Shares, Series AA (“Series AA Preferred Shares”) have been tendered for conversion on September 1, 2022, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series AB (“Series AB Preferred Shares”).
In addition, 1,977,982 of its 8,599,204 Series AB Preferred Shares have been tendered for conversion on September 1, 2022, on a one-for-one basis, into Series AA Preferred Shares. Consequently, on September 1, 2022, BCE will have 12,307,661 Series AA Preferred Shares and 7,688,739 Series AB Preferred Shares issued and outstanding. The Series AA Preferred Shares and the Series AB Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbols BCE.PR.A and BCE.PR.B, respectively.
The Series AA Preferred Shares will pay on a quarterly basis, for the five-year period beginning on September 1, 2022, as and when declared by the Board of Directors of BCE, a fixed cash dividend based on an annual fixed dividend rate of 4.94%.
The Series AB Preferred Shares will continue to pay a monthly floating adjustable cash dividend for the five-year period beginning on September 1, 2022, 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 AB Preferred Shares in the preceding month) and the Designated Percentage for the preceding month.
