BCE Inc. has announced:
that 3,245,010 of its 14,000,000 fixed-rate Cumulative Redeemable First Preferred Shares, Series AI (series AI preferred shares) have been tendered for conversion on August 1, 2011, on a one-for-one basis, into floating-rate Cumulative Redeemable First Preferred Shares, Series AJ (series AJ preferred shares). Consequently, BCE will issue 3,245,010 new series AJ preferred shares on August 1, 2011.
The remaining series AI preferred shares will continue to be listed on The Toronto Stock Exchange under the symbol BCE.PR.I. The series AI preferred shares will pay on a quarterly basis, for the five-year period beginning on August 1, 2011, as and when declared by the Board of Directors of BCE, a fixed dividend based on an annual dividend rate of 4.15%.
The series AJ preferred shares will pay a monthly floating adjustable cash dividend for the five-year period beginning on August 1, 2011, as and when declared by the Board of Directors of BCE. The monthly floating adjustable dividend for any particular month will be calculated based on the prime rate for such month and using the Designated Percentage for such month representing the sum of the 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. The series AJ preferred shares will be listed on The Toronto Stock Exchange under the symbol BCE.PR.J and will start trading at the opening of the market on August 2, 2011.
BCE.PR.I is tracked by HIMIPref™, but is assigned to the Scraps index on credit concerns. BCE.PR.J will be tracked by HIMIPref™ when it commences trading. The issues and exchange potential were discussed on PrefBlog in the post BCE.PR.I: Rate Change to 4.15%; Exchangeable to Ratchets