#Canada #Montreal #Bell Canada #Hybrid Notes #Cdn $1.5 billion

Bell Canada Announces Cdn $1.5 Billion Offering of Hybrid Notes

On February 9, 2026, Bell Canada made a significant announcement regarding its financial activities, introducing an offering of Cdn $1.5 billion in Fixed-to-Fixed Rate Junior Subordinated Notes. This substantial offering reflects the company's strategy to optimize its financial portfolio and manage its debt effectively.

Overview of the Offering

The offering comprises two series of Fixed-to-Fixed Rate Junior Subordinated Notes. The first series, amounting to Cdn $750 million, will be due in 2056 and will initially provide an interest rate of 5.375% per annum. The interest rate for this series will reset every five years starting from May 12, 2031. Notably, the rate will be based on the five-year Government of Canada yield plus a spread of 2.388%, but it will not fall below 5.375% during any five-year interest period.

The second series, also totaling Cdn $750 million, will bear an initial interest rate of 5.875%, similarly resetting every five years but beginning on May 12, 2036, with a spread of 2.440%. Like the first series, this series also maintains a floor interest rate of 5.875% throughout its respective interest periods.

Both series of notes are being issued at prices very close to their face value, at Cdn $99.975 and Cdn $99.970 per $100 principal amount, respectively.

Purpose and Impact

The proceeds from this offering are intended for several purposes, including the repurchase, redemption, or repayment of existing senior or subordinated indebtedness of Bell Canada. This move is crucial for the company in optimizing its debt management and strengthening its financial position, especially in an environment where interest rates are subject to fluctuation.

Bell’s strategy is aligned with its broader objective of fostering growth and maintaining robust operations in a competitive communications sector. By managing its capital more effectively, the company aims to enhance its service delivery, ensuring customers remain connected and informed.

Terms and Conditions

This offering is accessible to investors across all provinces of Canada, facilitated by a syndicate of financial agents. The closing is expected to occur on February 12, 2026, contingent on customary closing conditions. Additionally, BCE Inc. will offer a full and unconditional guarantee for the notes, adding a layer of security for investors.

It’s important to note that these securities will not be registered under U.S. Securities Act and thus will not be available for sale in the U.S. or to U.S. persons. This restriction highlights Bell's focus on keeping its offerings within the regulatory frameworks of Canadian securities law.

A Look at Bell Canada

As a leader in Canada’s communications landscape, Bell Canada is renowned for its advancements in fiber optics, wireless networks, and digital media services. The company’s commitment to leveraging next-generation technology reflects in its growth strategies, ensuring they meet the diverse needs of their customer base while remaining competitive on a global scale. This latest offering of hybrid notes not only positions Bell Canada favorably in the eyes of investors but also underscores its ongoing efforts to enhance operational efficiency.

To access additional details regarding the prospectus supplement and other relevant documents related to the offering, interested parties can utilize the SEDAR+ platform, where this information will be made available within two business days after the announcement.

Conclusion

The launch of the Cdn $1.5 billion offering of Junior Subordinated Notes is a pivotal step for Bell Canada as it continues to navigate the complexities of the financial landscape. The strategic use of the proceeds is expected to bolster its financial stability and enable continued investment in technology and service delivery. This move showcases Bell’s potential not just as a telecommunications provider but as a robust player in corporate finance as well.