#Canada #Montreal #Bell Canada #Hybrid Notes #BCE Inc

Bell Canada Announces Cdn $1.25 Billion Hybrid Notes Offering

In an important announcement made on March 20, 2025, Bell Canada, one of the foremost telecom giants in Canada, has declared the launch of its offering for a substantial amount of Cdn $1.25 billion in Fixed-to-Fixed Rate Junior Subordinated Notes. These notes, designated as Series C and due in 2055, are designed to attract a broad spectrum of investment interests by delivering a compelling interest rate, initially set at 5.625%. This rate is set to reset every five years, beginning on March 27, 2030, at a rate that will be 2.950% above the yield of five-year Government of Canada bonds, ensuring that the minimum interest rate does not fall below the initial figure.

The offering's structure represents a significant financial strategy, showcasing Bell Canada's commitment to maintaining a robust financial position while allowing it to meet various corporate objectives. The initiative is poised to close on March 27, 2025, subject to standard closing conditions. Investors looking to capitalize on this opportunity can participate through a syndicate of agents facilitating the public offering across all provinces of Canada.

Furthermore, the company assures that the proceeds from this offering will be directed towards repurchasing, redeeming, or repaying its senior indebtedness while also serving other general corporate purposes. This strategic maneuver reflects Bell Canada’s intent to optimize its capital structure, which could ultimately enhance value for its stakeholders and strengthen its financial footing during an era of evolving market dynamics.

In terms of compliance and regulatory requirements, Bell will file a prospectus supplement to their recently amended base shelf prospectus, which was last updated in February 2025. This action complies with the securities laws governing public offerings in Canada, helping to maintain transparency with potential investors. The supplementary documentation will be made accessible through SEDAR+, expected within two business days following the announcement.

It’s essential to note that this offering also comes with a cautionary statement regarding forward-looking assertions; such statements, although helpful in anticipating future events, are inherently risky and dependent on multiple factors that can diverge from actual outcomes. Bell Canada encourages investors to acknowledge these risks when considering participation in this offering.

As with all corporate securities offerings, the Notes will not be available for purchase by U.S. persons or in the United States due to regulatory constraints under the U.S. Securities Act of 1933. Bell Canada actively encourages interested investors within Canada to engage with supported firms involved in the flotation for more information and possible participation.

About Bell Canada

Founded in 1880 and wholly owned by BCE Inc., Bell Canada stands as the largest communications company in the nation. The firm is distinguished for providing cutting-edge broadband Internet, wireless, television, media, and business communication services across the country. Bell is committed to investing in the social and economic welfare of its communities, notable for initiatives like Bell Let's Talk, which aims to combat stigma surrounding mental health in Canada. The telecom leader continues to align its strategies with the long-term vision of delivering innovative services while contributing to the welfare of Canadian society and maintaining a sound fiscal foundation.

This development is just one aspect of Bell Canada’s broader strategic operations, showcasing its proactive response in the telecommunications landscape and offering investors an opportunity to partake in its growth journey.