BCE has announced:
1. Holders of floating-rate BCE Inc. Series AH Preferred Shares have the right to convert all or part of their shares, effective on May 1, 2026, on a one-for-one basis into fixed-rate Cumulative Redeemable First Preferred Shares, Series AG of BCE Inc. (the “Series AG Preferred Shares”). In order to convert their shares, holders must exercise their right of conversion during the conversion period which runs from March 17, 2026 until 5:00 p.m. (Eastern time) on April 21, 2026.
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5. As of May 1, 2026, the Series AG 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 April 6, 2026 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 April 6, 2026 by two investment dealers appointed by BCE Inc. The annual dividend rate applicable to the Series AG Preferred Shares will be published on April 9, 2026 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.
BCE.PR.G reset to 3.37% in 2021.
BCE.PR.H is a “RatchetRate” preferred, paying a varying percentage of prime depending upon the trading price:
As of May 1, 2026, the Series AH Preferred Shares, should they remain outstanding, will continue to pay a monthly floating dividend based on a dividend rate that will fluctuate over time between 50% and 100% of the Prime rate (“Prime”) for each month computed in accordance with the articles of BCE Inc. Accordingly, from May 1, 2026, the holders of Series AH Preferred Shares will continue to be entitled to receive floating adjustable cash dividends, as and when declared by the Board of Directors of BCE Inc., to be paid on the twelfth day of the subsequent month. The dividend rate will be adjusted upwards or downwards on a monthly basis by an Adjustment Factor (as described below) whenever the Calculated Trading Price, being the market price of the Series AH Preferred Shares computed in accordance with the articles of BCE Inc., is $24.875 or less or $25.125 or more, respectively. The Adjustment Factor for a month will be based on the Calculated Trading Price of the Series AH Preferred Shares for the preceding month determined in accordance with the following table:
If the Calculated Trading Price for the preceding month is: The Adjustment Factor as a percentage of Prime shall be: $25.50 or more – 4.00% $25.375 and less than $25.50 – 3.00% $25.25 and less than $25.375 – 2.00% $25.125 and less than $25.25 – 1.00% Greater than $24.875 and less than $25.125 nil Greater than $24.75 to $24.875 + 1.00% Greater than $24.625 to $24.75 + 2.00% Greater than $24.50 to $24.625 + 3.00% $24.50 or less + 4.00% The maximum Adjustment Factor for any month will be ±4.00% of the average Prime rate for the month.
Based on the foregoing, the annual floating dividend rate for any month shall be the rate of interest expressed as a percentage per annum equal to: (a) Prime for such month, multiplied by (b) the Designated Percentage for such month, with the Designated Percentage being the Adjustment Factor for such month plus the Designated Percentage for the preceding month. The annual floating dividend rate applicable for a month will in no event be less than 50% of Prime nor will it be greater than Prime.
The following formula illustrates the manner of computing the annual floating dividend rate applicable to the month of May 2026:
Annual floating dividend Prime for Designated Percentage rate for May 2026 = May 2026 X for May 2026* * The Designated Percentage for the month of May 2026 is the sum of:
(a) the Adjustment Factor for the month of May 2026 based on the Calculated Trading Price for the month of April 2026; and
(b) the Designated Percentage for the month of April 2026