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Preferred Share Description
BCE Inc. (BCE.PR.A)
3.61% Cumulative, Redeemable, Rate-Reset, 1st preferred shares, Series AA
Prospectus - February 14, 2002
DBRS Credit Update: March 8, 2019 - DBRS assigned a Short Term Issuer Rating of R-2 (middle) with a Stable trend to BCE Inc. (BCE), the parent company of Bell Canada. This rating effectively represents a placeholder for BCE as if it was an issuer of commercial paper. As a result, DBRS also discontinued and withdrew the rating of BCE’s Commercial Paper (previously R-2 (middle), Stable). DBRS also confirmed BCE’s Issuer Rating and Unsecured Debentures rating, as well as all the ratings of Bell Canada and Bell-MTS Inc. All trends remain Stable.
The rating confirmations are supported by steady operating income growth and stable financial metrics. The ratings are supported by the Company’s considerable size and scale, as well as its leading market position in wireline services, number two market position in wireless with strong advances and revenue diversification. The ratings also reflect intensifying competition, the expected loss of legacy wireline services revenues and the risks associated with technological and regulatory change.
BCE/Bell Canada’s earnings profile is well positioned in the current ratings, supported by steady operating growth, wireless market share gains and an impressive track record of operating income growth despite headwinds in its legacy wireline services offering. Revenues for 2018 increased 3.1% year over year (YOY) to $23.5 billion, driven by growth across all three operating segments.
Dividend Note: The share's dividend was reset on September 1, 2017, to $0.9025 per share, for the next five years. This is a 4 cent increase from the previous $0.86025 per share.
Dividend Note: The share's dividend was reset on September 1, 2012, to $0.8625 per share, for the next five years. This is substantial reduction from the previous $1.20 per share. The share's initial dividend rate was set at an annual dividend rate of $1.3625 per share until August 31, 2007.
- DBRS Rating
- Pfd-3 Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $0.9025 per share per year
- Dividend Dates
- The first day of March, June, September and December
- Dividend Details
- The dividend rate is fixed at $0.9025 until September 1, 2022. On September 1, 2022 and on September 1st every 5 years thereafter the dividend rate will be reset . Minimum dividend rate will be not less than 80% of the five-year Government of Canada Yield.
- The shares are redeemable, at the issuer's option, on the following dates, as follows: September 1, 2012 at $25.00 and on September 1st every fifth year thereafter at $25.00 per share.
- Holders of the AA preferred shares have the right to convert their shares on September 1, 2022 and on September 1st every 5 years thereafter on a one-for-one basis into an equal number of Series AB Floating Rate shares. The Series AB Floating-Rate shares calculate and pay a dividend on the 12th day of every month. The dividend rate will float in relation to changes in Prime and will be adjusted upwards or downwards on a monthly basis whenever the Calculated Trading Price of the Series AB Preferred Shares is $24.875 or less or $25.125 or more respectively. The maximum monthly adjustment for changes related to the Calculated Trading Price will be +/-4.00% of Prime. However, the annual floating dividend rate applicable in a month will in no event be less than 50% of Prime or be greater than Prime. In addition, on September 1, 2022, and on September 22 every 5 years thereafter, owners of the Series AB, floating-rate preferred shares, will have the option to convert their shares into an equal number of Series AA, rate-reset preferred shares.
- Lead Underwriter(s)
- TD Securities Inc.
- Transfer Agent
- Computershare Trust Company of Canada
- Computershare Trust Company of Canada
- Dividend Reinvestment Plan
- No plan available for preferred shareholders.
- Last Updated