BCE to convert fixed-rate series AM, floating-rate series AN preferreds

By Taylor Fox

New York, March 17 – BCE Inc. announced that 42,423 of its 9,542,615 fixed-rate cumulative redeemable first preferred shares, series AM have been tendered for conversion into floating-rate cumulative redeemable preferred shares, series AN.

The series AM fixed-rate preferred shares will be converted into series AN floating-rate preferred shares on March 31 on a one-for-one basis, according to a news release.

In addition, 939,786 of BCE’s 1,952,085 series AN preferred shares have been tendered for conversion on March 31 on a one-for-one basis into series AM preferred shares.

BCE will then have 10,439,978 series AM preferred shares and 1,054,722 series AN preferred shares issued and outstanding.

The series AM preferreds will pay on a quarterly basis, for the five-year period beginning on March 31, 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 preferreds continue to pay, for each quarterly period, as and when declared by the board of directors of BCE, a quarterly floating cash dividend based on the T-Bill rate for that quarterly period plus 209 basis points. The dividend rate for the quarterly period beginning on March 31 is 0.53927%, reflecting an annual rate of 2.163%.

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.

BCE is a Montreal-based communications company.

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