BCE.PR.J BCE Inc Preferred Shares Series AJ

The following is a set of excerpts from the prospectus document for the Series AJ 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.J BCE Inc Preferred Shares Series AJ was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

14,000,000 Shares Cumulative Redeemable Class A Preferred Shares, Series 19 Until August 1, 2006, the Cumulative Redeemable Class A Preferred Shares, Series 19 (the ‘‘Series 19 Preferred Shares’’) will be entitled to fixed cumulative preferred cash dividends of $1.3875 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 first day of February, May, August and November in each year with the initial dividend, if declared, payable on November 1, 2001 in the amount of $0.51699 per share. See ‘‘Details of the Offering’’.

Excerpt: Reset Date and Yield Terms

Thereafter, for the initial Subsequent Fixed Rate Period, commencing on August 1, 2006 and ending on and including July 31, 2011 and for each succeeding Subsequent Fixed Rate Period, commencing on the day immediately following the end of the immediately preceding Subsequent Fixed Rate Period and ending on and including July 31 in the fifth year thereafter, the Series 19 Preferred Shares will be entitled to fixed cumulative preferred cash dividends, as and when declared by the board of directors of Bell Canada. Bell Canada shall determine on the 25th day prior to the first day of each Subsequent Fixed Dividend Rate Period the annual dividend rate for each Subsequent Fixed Dividend Rate Period, which shall not be less than 80% of the five-year Government of Canada Yield , and give notice thereof. See ‘‘Details of the Offering’’.

Excerpt: Conversion Terms

Conversion into a Further Series of Preferred Shares Holders of Series 19 Preferred Shares will have the right to convert their shares into Cumulative Redeemable Class A Preferred Shares, Series 20 of Bell Canada (the ‘‘Series 20 Preferred Shares’’), subject to certain conditions, on August 1, 2006 and every five years thereafter. See ‘‘Details of the Offering’’.
On August 1, 2006 or on August 1 in every fifth year thereafter, Bell Canada may redeem for cash the Series 19 Preferred Shares, in whole but not in part, at Bell Canada’s option, at $25.00 per share plus accrued and unpaid dividends. From August 1, 2006, floating adjustable cumulative preferred cash dividends, if declared, will be payable monthly on the twelfth day of each month following the month of August 2006, with the annual floating dividend rate for the first month equal to 80% of Prime. 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 20 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.