BCE.PR.E BCE Inc Preferred Shares Series AE

The following is a set of excerpts from the prospectus document for the Series AE preferreds. The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page. The original document for BCE.PR.E BCE Inc Preferred Shares Series AE was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

December 16, 1999 December 16, 1999 Bell Canada $400,000,000 16,000,000 Shares Cumulative Redeemable Class A Preferred Shares Series 15 Until February 1, 2005, the Cumulative Redeemable Class A Preferred Shares Series 15 (the “”Series 15 Preferred Shares”) will be entitled to Ñxed cumulative preferred cash dividends of $1.375 per share per annum, as and when declared by the board of directors of Bell Canada, which will accrue from the date of issue and will be payable quarterly on the Ñrst day of February, May, August and November in each year with the initial dividend, if declared, payable on May 1, 2000 in the amount of $0.41815 per share. See “”Details of the OÅering”. Thereafter, the Series 15 Preferred Shares will be entitled to Öoating adjustable cumulative preferred cash dividends, as and when declared by the board of directors of Bell Canada, which will accrue from February 1, 2005, and will be payable monthly on the twelfth day of each month commencing with the month of March 2005, with the annual Öoating dividend rate for the Ñrst month equal to 80% of Prime. The dividend rate will Öoat in relation to changes in Prime and will be adjustable upwards or downwards on a monthly basis whenever the Calculated Trading Price of the Series 15 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 54.00% of Prime. The annual Öoating dividend rate applicable for a month will in no event be less than 50% of Prime or greater than Prime. See “”Details of the OÅering”. Conversion into a Further Series of Preferred Shares Holders of Series 15 Preferred Shares will have the right to convert their shares into Cumulative Redeemable Class A Preferred Shares Series 16 of Bell Canada (the “”Series 16 Preferred Shares”), subject to certain conditions, on February 1, 2005 and every Ñve years thereafter. See “”Details of the OÅering”. On February 1, 2005, Bell Canada may redeem for cash the Series 15 Preferred Shares, in whole but not in part, at Bell Canada’s option, at $25.00 per share plus accrued and unpaid dividends. Subsequent to February 1, 2005, Bell Canada may redeem at any time for cash the Series 15 Preferred Shares, in whole but not in part, at Bell Canada’s option, at $25.50 per share plus accrued and unpaid dividends. See “”Details of the OÅering”. Of the 16,000,000 Series 15 Preferred Shares oÅered by this short form prospectus, 11,800,000 Series 15 Preferred Shares will be issued to speciÑed purchasers at a price of $25.00 per share to be paid to Bell Canada from the proceeds of the redemption of the $150,000,000 Perpetual Cumulative Reset Redeemable Class A Preferred Shares Series 11 of Bell Canada and the redemption of the $145,000,000 Perpetual Cumulative Reset Redeemable Class A Preferred Shares Series 13 of Bell Canada held by the same parties. No underwriting fee will be paid in respect of the sale of the Series 15 Preferred Shares to such parties. See “”Plan of Distribution”. The Toronto Stock Exchange has conditionally approved the listing of the Series 15 Preferred Shares. Listing is subject to Bell Canada fulÑlling all the requirements of the Exchange on or before March 9, 2000 including distribution of the securities to a minimum number of public shareholders.

Excerpt: Reset Date and Yield Terms

Principal Characteristics of Series 15 Preferred Shares Dividends: Until February 1, 2005, Ñxed cumulative preferred cash dividends at an annual rate equal to the Initial Yield will, if declared, be payable quarterly on the Ñrst day of February, May, August and November in each year. Assuming an issue date of January 11, 2000, an initial dividend, if declared, of $0.41815 per share will be payable on May 1, 2000. From February 1, 2005, Öoating adjustable cumulative preferred cash dividends, if declared, will be payable monthly on the twelfth day of each month following the month of February 2005, with the annual Öoating dividend rate for the Ñrst month equal to 80% of Prime. The dividend rate will Öoat 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 15 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 64.00% of Prime. However, the annual Öoating dividend rate applicable in a month will in no event be less than 50% of Prime or greater than Prime.

Excerpt: Conversion Terms

Conversion into Series 16 Preferred Shares: Holders of Series 15 Preferred Shares will, subject to the automatic conversion provisions, have the right to convert, on February 1, 2005 and on February 1 every Ñve years thereafter (a “”Conversion Date”), their shares into an equal number of Series 16 Preferred Shares upon giving to Bell Canada notice thereof not earlier than 45 days prior to, but not later than the close of business on the 14th day preceding, a Conversion Date. Principal Characteristics of Series 16 Preferred Shares Dividends: Fixed cumulative preferred cash dividends will, if declared, be payable quarterly on the Ñrst day of February, May, August and November in each year. At least 45 days and not more than 60 days prior to the start of the initial dividend period beginning on February 1, 2005, and at least 45 days and not more than 60 days prior to the Ñrst day of each subsequent dividend period (the initial Ñve year dividend period and all subsequent Ñve year dividend periods being referred to as a “”Fixed Dividend Rate Period”), Bell Canada shall set, and provide written notice of, a Selected Percentage Rate for the ensuing Fixed Dividend Rate Period. Such Selected Percentage Rate shall not be less than 80% of the Ñve-year Government of Canada Yield determined on the 21st day preceding the Ñrst day of the applicable Fixed Dividend Rate Period.