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

Bell Canada Announces US$2.25 Billion Hybrid Notes Offering

In a bold financial move, Bell Canada has officially announced the offering of US$2.25 billion in Fixed-to-Fixed Rate Junior Subordinated Notes. This offering is structured into two distinct series, designed to bolster the company's financial strategy and respond effectively to current market conditions. The announcement was made public on February 12, 2025, and the company expects the closing of the offering to take place shortly after on February 18, 2025, pending standard closing conditions.

Overview of the Notes

The offering includes:

• - Series A: US$1 billion Fixed-to-Fixed Rate Junior Subordinated Notes due in 2055, which will initially carry an interest rate of 6.875%. This rate is set to reset every five years, beginning September 15, 2030, to an annual rate derived from the five-year U.S. Treasury rate plus a spread of 2.390%. However, importantly, the interest rate will not drop below the initial rate of 6.875% during any five-year period.

• - Series B: US$1.25 billion Fixed-to-Fixed Rate Junior Subordinated Notes due in 2055, with a higher initial interest rate of 7.000%. Similar to Series A, this rate will reset every five years starting September 15, 2035, following the same calculation principles, ensuring the rate remains at least 7.000%.

The notes are being offered publicly within the United States via a syndicate of underwriters, signaling confidence in the demand for these financial instruments.

Purpose of the Offering

Bell Canada intends to utilize the net proceeds from this extensive offering primarily for repurchase, redemption, or repayment of its existing senior indebtedness. This strategic move is expected to enhance financial flexibility and reinforce the company’s position in the evolving telecommunications landscape.

Furthermore, the offering aligns with Bell’s ongoing commitment to maintaining a robust financial structure while also meeting the needs of its stakeholders.

Compliance and Disclaimer

This offering is meticulously structured to comply with U.S. securities regulations, as highlighted in the prospectus supplement tied to Bell's revised short-form base shelf prospectus filed with the U.S. Securities and Exchange Commission as of February 6, 2025. It’s essential to note that these securities are not qualified for distribution in Canada without adhering to specific legal requirements, making the offering unique to the U.S. market.

Bell Canada has emphasized that this announcement does not constitute an offer to sell securities in jurisdictions where such offers would be illegal. Hence, the company has taken proactive measures to inform potential investors of the inherent risks and conditions associated with such financial products.

Conclusion

Bell Canada's latest announcement reflects a proactive stance in managing its finances while also setting the stage for future growth and sustainability. By issuing US$2.25 billion in hybrid notes, the telecommunications giant not only secures funding for debt management but also positions itself for long-term success amid an ever-competitive market.

To learn more about this offering and gain access to the detailed prospectus documentation, interested parties can contact Bell’s Investor Relations department located in Verdun, Québec, or visit their official websites for up-to-date information. With this significant financial maneuver, Bell Canada continues to underline its status as a leading entity in the telecommunications sector.