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BCE Inc. Announces Preferred Share Conversions

BCE Inc., a major player in Canadian telecommunications, has recently reported noteworthy developments regarding its Series AF and AE Preferred Shares. On January 21, 2025, the company revealed that a total of 8,050 out of 8,779,487 Series AF Preferred Shares are set to transition to floating-rate Series AE Preferred Shares. This conversion is scheduled for February 1, 2025, conducted on a one-for-one basis, marking a strategic shift in BCE's capital structure.

In tandem with this, 2,479,334 of the 5,810,913 outstanding Series AE Preferred Shares will revert back to Series AF Preferred Shares, also on a one-for-one basis. As a result of these conversions, after accounting for potential cancellations through BCE's normal course issuer bid before the conversion date, there will be 11,250,771 Series AF Preferred Shares and 3,339,629 Series AE Preferred Shares outstanding following the conversion.

The fixed-rate Series AF shares will feature a cash dividend set at an annual rate of 5.496%, payable quarterly, providing predictable returns for investors over the next five years starting from the conversion date. On the other hand, the Series AE shares will continue to offer a floating, adjustable monthly dividend that fluctuates with the prime rate, calculated in relation to market performance.

This shift signals BCE's proactive approach to diversifying its share offerings and aligning them with current market conditions. Investors looking for fixed-income options may find the stable returns of the Series AF shares appealing, especially given the volatility that often accompanies floating-rate investments.

BCE stands as Canada's largest communications company, illustrating its commitment to evolving and enhancing shareholder value through strategic financial maneuvers. For more information on BCE and its initiatives, you can visit Bell.ca or BCE.ca.

Additionally, BCE is dedicated to promoting social and economic well-being across its service areas. Through its Bell for Better initiative, the company supports various community programs, including the Bell Let's Talk campaign, which raises awareness around mental health issues in Canada. Such initiatives complement BCE's business strategy by fostering a positive brand image while contributing to societal benefit.

With these developments, BCE Inc. is not just reshaping its financial structure but also reinforcing its commitment to both its investors and the communities it serves. As the company approaches these conversion dates, stakeholders will be keenly watching how this will affect their investments in the coming year.