{"id":9388,"date":"2010-01-12T22:46:29","date_gmt":"2010-01-13T02:46:29","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=9388"},"modified":"2010-01-12T22:46:29","modified_gmt":"2010-01-13T02:46:29","slug":"bceprf-to-reset-to-4541","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=9388","title":{"rendered":"BCE.PR.F to Reset to 4.541%"},"content":{"rendered":"<p>BCE Inc. has announced (in an ad in the <i>Globe and Mail<\/i>, which I can&#8217;t find on either the <i>Globe<\/i>&#8216;s website or BCE&#8217;s) that:<\/p>\n<blockquote><p>The &#8220;Selected Percentage Rate&#8221; determined by BCE Inc. is 168%. The &#8220;Government of Canada Yield&#8221; is 2.703%. <b>Accordingly, the annual dividend rate applicable to the Series AF Preferred Shares for the five-year period beginning on February 1, 2010 will be 4.541%<\/b><\/p><\/blockquote>\n<p>This implies that the annual dividend will change to $1.13525, a slight increase from the current $1.10.<\/p>\n<p>BCE.PR.F is convertible to and from BCE.PR.E for a short time every five years &#8211; and the window is about to close. Those who wish to convert should contact their brokers immediately.<\/p>\n<p>I recommend holding the fixed rate issue, BCE.PR.F. While I will agree with most that prime will rise in the near future, I am not so convinced that the average over the next five years will exceed 4.541%. One way of achieving such an average, for instance would be a steady rise in prime to about 6.75% over a five year period, an increase of 450bp, or nearly 25bp each and every quarter. That sounds a little extreme, but then, what do I know?<\/p>\n<p>BCE.PR.F was last discussed on PrefBlog when the <a href=\"http:\/\/www.prefblog.com\/?p=9056\">conversion notice was published<\/a>.<\/p>\n<p>BCE.PR.F is tracked by HIMIPref\u2122 but is relegated to the Scraps index on credit concerns. BCE.PR.E is not tracked by HIMIPref\u2122 (there are less than 2-million outstanding) but I may add it to the list if there\u2019s a rush to convert.<\/p>\n<p><b>Update, 2010-1-13<\/b>: Finally! <a href=\"http:\/\/www.bce.ca\/data\/documents\/Notice_of_Dividend_Rate_Series_AF.pdf\">BCE Notice from website<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BCE Inc. has announced (in an ad in the Globe and Mail, which I can&#8217;t find on either the Globe&#8216;s website or BCE&#8217;s) that: The &#8220;Selected Percentage Rate&#8221; determined by BCE Inc. is 168%. The &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-9388","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9388"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/9388\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}