BCE.PR.C / BCE.PR.D Conversion Notice Sent

BCE Inc. has released the conversion notice for BCE.PR.C (Fixed-Floater) and a matching notice for BCE.PR.D (Ratchet Rate).

These issues constitute a Strong Pair.

The effective date of the interconversion is 2018-3-1. The deadline for instructing the company to convert shares is 5:00 p.m. (Eastern time) on February 19, 2018 – but note that brokers serving the public will probably have internal deadlines a day or two in advance of this. The new dividend rate on BCE.PR.C will be published 2018-2-7.

The outstanding shares of BCE.PR.C have paid 3.55% since the last conversion in 2013. Prime was at 3.00% when the last conversion was effective45bp lower than the current rate!

These shares are trading at very nearly the same price … alas, there isn’t much of a last-minute arbitrage possibility here!

I will post more when the fixed rate (for the next five years) is known.

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