BCE.PR.G To Reset at 2.80%

BCE Inc. has announced:

BCE Inc. will, on May 1, 2016, continue to have Cumulative Redeemable First Preferred Shares, Series AG (“Series AG Preferred Shares”) outstanding if, following the end of the conversion period on April 21, 2016, BCE Inc. determines that at least 2 million Series AG Preferred Shares would remain outstanding. In such a case, as of May 1, 2016, the Series AG 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 an annual fixed dividend rate equal to 2.80%.

The previous dividend was 4.50%, so the current dividend represents a cut of 38%.

As previously discussed, BCE.PR.G is interconvertible with BCE.PR.H, with the deadline for notification of the company being April 21; this interconvertibility repeats every five years. BCE.PR.H is a RatchetRate preferred, currently paying 100% of prime based on par value; this percentage of prime will be reduced only if the trading price for a given month exceeds 25.00, a circumstance that is currently of rather low probability.

A recommendation regarding which of the two elements of the Strong Pair is preferable will be made shortly prior to the expiration of the notification period.

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