BCE.PR.Z / BCE.PR.Y Conversion Notice Sent

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

These issues constitute a Strong Pair.

The effective date of the interconversion is 2017-12-1. The deadline for instructing the company to convert shares is 5:00 p.m. (Eastern time) on November 17, 2017 – 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.Z will be published 2017-11-14.

The outstanding shares of BCE.PR.Z have paid 3.152% since the last conversion in 2012. Prime was at 3.00% when the last conversion was effective … just 20bp lower than the current rate!

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

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

Leave a Reply

You must be logged in to post a comment.