PrefBlog

BCE Inc. has announced:

that 468,442 of its 2,279,791 floating-rate Cumulative Redeemable First Preferred Shares, Series S (series S preferred shares) have been tendered for conversion on November 1, 2011, on a one-for-one basis, into fixed-rate Cumulative Redeemable First Preferred Shares, Series T (series T preferred shares). In addition, 1,794,876 of its 5,720,209 series T preferred shares have been tendered for conversion on 1, 2011, on a one-for-one basis, into series S preferred shares. Consequently, on November 1, 2011 will have 3,606,225 series S preferred shares and 4,393,775 series T preferred shares issued and outstanding. The series S preferred shares and the series T preferred shares will continue to be listed on the Toronto Stock Exchange under the symbols BCE.PR.S and BCE.PR.T, respectively.

The series S preferred shares will continue to pay a monthly floating adjustable cash dividend for the five-year period beginning on November 1, 2011, as and when declared by the Board of Directors of BCE. The monthly floating adjustable dividend for any particular month will continue to be calculated based on the prime rate for such month and using the Designated Percentage for such month representing the sum of an adjustment factor (based on the market price of the series S preferred shares in the preceding month) and the Designated Percentage for the preceding month.

The series T preferred shares will pay on a quarterly basis, for the five-year period beginning on November 1, 2011, as and when declared by the Board of Directors of BCE, a fixed cash dividend based on an annual fixed dividend rate of 3.393%.

I had previously recommended that shareholders continue to hold, or convert to, BCE.PR.T. Nobody ever listens to me.

This entry was posted on Wednesday, October 19th, 2011 at 11:48 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.