#Canada #Montreal #Bell Canada #Hybrid Notes #Fixed-to-Fixed

Bell Canada's Major Offering of Hybrid Notes

Bell Canada has taken a significant step in the financial market by announcing an offering worth Cdn $1.5 billion in aggregate principal amount of Fixed-to-Fixed Rate Junior Subordinated Notes. This announcement, made on February 9, 2026, heralds a new financial initiative aimed at bolstering the company’s capital structure and providing investors with attractive long-term opportunities.

Details of the Offering

The offering includes two different series of notes:
1. Series D Notes: These notes constitute Cdn $750 million of the offering, and are set to mature in 2056. They will initially bear an interest rate of 5.375% per annum. Every five years, starting May 12, 2031, the interest rate will reset to the five-year Government of Canada yield plus a spread of 2.388%. Notably, the interest rate for any five-year period will not fall below 5.375%.
2. Series E Notes: This series also amounts to Cdn $750 million and is similarly due in 2056. They will offer a higher initial interest rate of 5.875% per annum, with a reset every five years starting from May 12, 2036, following the same governmental yield plus a spread model, ensuring the rate does not drop below 5.875%.

Both series of notes are anticipated to be publicly offered across all provinces in Canada through a syndicate of agents. The closing date for this offering is projected to be February 12, 2026, contingent upon customary closing conditions. Furthermore, BCE Inc. fully guarantees these notes, reflecting confidence in the financial stability and investment potential of Bell Canada.

Use of Proceeds

Bell Canada has outlined its intentions for the net proceeds of the offering, planning to utilize these funds primarily for repurchasing, redeeming, or repaying senior or subordinated indebtedness. This strategic maneuver is aimed at optimizing Bell’s financial management and supporting various corporate purposes.

Importance of the Offering

The launch of these Hybrid Notes is crucial not only for raising capital but also for providing an option for investors looking for stability and profitability in their portfolios. As one of Canada's largest communication providers, Bell Canada is at the forefront of advancing technology and maintaining a robust infrastructure. This move signals a proactive approach to financial stability, ensuring that the company can continue to innovate and serve its customer base effectively.

Regulatory Considerations

It is important to note that the offering will be made pursuant to Bell Canada's amended and restated short form base shelf prospectus, originally dated February 6, 2025. A prospectus supplement will also be filed with securities regulatory authorities, emphasizing the company’s commitment to transparency and compliance in all offering procedures.

Conclusion

Investors interested in the telecommunications sector and those looking for stable income-generating securities may find Bell Canada’s offering of Hybrid Notes appealing. The combination of attractive interest rates and a robust backing from BCE Inc. positions these notes as a compelling choice for investor consideration in 2026. For further information and access to related prospectuses, interested parties can visit www.sedarplus.ca or contact the underwriting banks directly.

In conclusion, this major financial maneuver by Bell Canada is poised to reinforce its market position, providing investors with a secure opportunity while supporting the company’s future initiatives and growth strategies.