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Preferred Share Description
BCE Inc. (BCE.PR.Q) - (the old Bell Aliant Preferred Shares, Series E)
4.812%, Cumulative, Redeemable, Rate-Reset, Series AQ preferred shares
Prospectus - January 31, 2013
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: On September 30, 2018 the dividend rate was reset to 4.812%, up from the share's previous rate of 4.25%.
Important Notice: As a result of BCE's purchase of Bell Aliant, on or about October 31, 2014, all Bell Aliant Regional Communications Inc. preferred shares will automatically convert into a new series BCE preferred shares that will have the same financial terms as the existing Bell Aliant preferred shares. The BCE preferred shares, series AQ, were converted from the Bell Aliant preferred shares, series E, when BCE purchased Bell Aliant.
- DBRS Rating
- Pfd-3 Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.203 per share per year
- Dividend Dates
- On the last day of June, September, December and March
- Dividend Details
- The dividend rate is fixed at 4.812% until September 30, 2023. On September 30, 2023 and on September 30th every five years thereafter the dividend will be reset to equal the sum of the Government of Canada Bond Yield (GCAN5YR) plus 2.64%.
- Redeemable at the issuer's option on September 30, 2023 and on September 30th every five years thereafter at $25.00.
- Holders of the Series AQ Preferred Shares will have the right, at their option, to convert their shares into cumulative floating-rate preferred shares, Series AR, on September 30, 2023 and on September 30 every five years thereafter. Holders of the Series AR floating-rate preferred shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the sum of the three-month Government of Canada Treasury Bill yield plus 2.64%. In addition, on September 30, 2028 and on September 30th every five years thereafter holders of the Series AR floating-rate preferred shares will have the option to convert the shares into an equal number of the Series AQ rate-reset preferred shares.
- Lead Underwriter(s)
- Scotia Capital, TD Securities and CIBC World Markets
- Transfer Agent
- Mellon Trust Company
- Mellon Trust Company
- Dividend Reinvestment Plan
- Not Available to preferred shareholders
- Last Updated