BCE Inc. has announced that it:
will, on December 1, 2010, continue to have Cumulative Redeemable First Preferred Shares, Series R outstanding if, following the end of the conversion period on November 17, 2010, BCE Inc. determines that at least one million Series R Preferred Shares would remain outstanding. In such a case, as of December 1, 2010, the Series R Preferred Shares will pay, on a quarterly basis, as and when declared by the Board of Directors of BCE Inc., a fixed cash dividend for the following five years that will be based on a fixed rate equal to the product of: (a) the yield to maturity compounded semi-annually (the “Government of Canada Yield”), computed on November 10, 2010 by two investment dealers appointed by BCE Inc., that would be carried by Government of Canada bonds with a 5-year maturity, multiplied by (b) the “Selected Percentage Rate”.
The “Selected Percentage Rate” determined by BCE Inc. is 207%. The “Government of Canada Yield” is 2.169%. Accordingly, the annual dividend rate applicable to the Series R Preferred Shares for the five-year period beginning on December 1, 2010 will be 4.490%.
The announcement of the Selected Percentage Rate was reported on PrefBlog. Data for the Pairs Equivalency Calculator have been updated, but as yet the RatchetRate complement to this issue, Series Q, does not exist.
BCE.PR.R is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.