BCE.PR.I / BCE.PR.J Exchange Date Approaching

BCE Inc. has issued a Notice to Holders of BCE Inc. Series AI Preferred Shares (BCE.PR.I):

Beginning on June 17, 2016 and ending on July 22, 2016, holders of Series AI Preferred Shares will have the right to choose one of the following options with regards to their shares:
1. To retain any or all of their Series AI Preferred Shares and continue to receive a fixed quarterly dividend; or
2. To convert, on a one-for-one basis, any or all of their Series AI Preferred Shares into BCE Inc. Cumulative Redeemable First Preferred Shares, Series AJ (the “Series AJ Preferred Shares”) and receive a floating monthly dividend.
Effective August 1, 2016, the fixed dividend rate for the Series AI Preferred Shares will be set for a five-year period as explained in more detail in paragraph 5 of the attached Notice of Conversion Privilege.

In order to convert your shares, you must exercise your right of conversion during the conversion period, which runs from June 17, 2016 to July 22, 2016, inclusively.

Holders of both the Series AI Preferred Shares and the Series AJ Preferred Shares will have the opportunity to convert their shares again on August 1, 2021, and every five years thereafter as long as the shares remain outstanding.

As of August 1, 2016, the Series AI Preferred Shares, should they remain outstanding, 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 determined by BCE Inc. on July 7, 2016 but which shall not be less than 80% of the five-year Government of Canada Yield (as defined in BCE Inc.’s articles) compounded semi-annually and computed on July 7, 2016 by two investment dealers appointed by BCE Inc. The annual dividend rate applicable to the Series AI Preferred Shares will be published on July 11, 2016 in the national edition of The Globe and Mail, the Montreal Gazette and Le Devoir and will be posted on BCE Inc.’s website at www.bce.ca.

There was a similar Notice to Holders of BCE Inc. Series AJ Preferred Shares (BCE.PR.J).

At the last exchange date, almost 25% of BCE.PR.I Converted to Ratchet Rate.

Assiduous Readers will understand that BCE.PR.I / BCE.PR.J is a Strong Pair; BCE.PR.I being a FixedFloater and BCE.PR.J being a RatchetRate preferred in my terminology.

I will pass on information regarding the reset dividend for BCE.PR.I when that becomes available and make a recommendation regarding which element of the pair is more desirable close to the end of the conversion notice period which, as noted above, runs until July 22.

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