BCE.PR.M BCE Inc Preferred Shares Series AM

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

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Excerpt: Size and initial yield

August 14, 2014 BCE INC. OFFER TO EXCHANGE all of the issued and outstanding Series A Preferred Shares, Series C Preferred Shares and Series E Preferred Shares of BELL ALIANT PREFERRED EQUITY INC. on the basis of (a) one BCE Inc. Series AM Preferred Share for each Series A Preferred Share; (b) one BCE Inc. Series AO Preferred Share for each Series C Preferred Share; and (c) one BCE Inc. Series AQ Preferred Share for each Series E Preferred Share BCE Inc. hereby offers (the “Offer”) to exchange, upon the terms and subject to the conditions described herein, all of the issued and outstanding Series A Preferred Shares, Series C Preferred Shares and Series E Preferred Shares of Bell Aliant Preferred Equity Inc. for newly issued preferred shares of BCE Inc., having financial terms that are the same as those attached to the Preferred Shares for which they are being exchanged. THE OFFER WILL BE OPEN FOR ACCEPTANCE FROM THE DATE HEREOF UNTIL 5:00 P.M. (EASTERN TIME) ON SEPTEMBER 19, 2014 UNLESS THE OFFER IS EXTENDED OR WITHDRAWN BY THE OFFEROR. Each Preferred Shareholder will be entitled to receive: (a) for each Series A Preferred Share, a newly issued Offeror Series AM Preferred Share; (b) for each Series C Preferred Share, a newly issued Offeror Series AO Preferred Share; and (c) for each Series E Preferred Share, a newly issued Offeror Series AQ Preferred Share. The holders of each series of Offeror Preferred Shares, during the applicable Initial Fixed Rate Period for such series of Offeror Preferred Shares, will be entitled to receive fixed, cumulative, preferential cash dividends, if, as and when declared by the Offeror Board, payable quarterly on the last day of March, June, September and December each year at an annual rate of $1.2125 per Offeror Series AM Preferred Share, $1.1375 per Offeror Series AO Preferred Share and $1.0625 per Offeror Series AQ Preferred Share. See the “Rights, Privileges, Restrictions and Conditions Attached to the Offeror Preferred Shares and the Offeror Converted Preferred Shares” appended hereto as Annex A.

Excerpt: Reset Date and Yield Terms

The holders of each series of Offeror Preferred Shares, during the applicable Subsequent Fixed Rate Period for such series of Offeror Preferred Shares, will be entitled to receive fixed, cumulative, preferential cash dividends, if, as and when declared by the Offeror Board, payable quarterly on the last day of March, June, September and December in each year, in the amount per share per annum determined by multiplying the applicable Annual Fixed Dividend Rate for such series of Offeror Preferred Shares applicable to such Subsequent Fixed Rate Period by $25.00. The Annual Fixed Dividend Rate for the ensuing Subsequent Fixed Rate Period will be equal to the sum of the Government of Canada Yield on the 30th day prior to the first day of such Subsequent Fixed Rate Period plus 2.09% in the case of the Offeror Series AM Preferred Shares, 3.09% in the case of the Offeror Series AO Preferred Shares and 2.64% in the case of the Offeror Series AQ Preferred Shares . See the “Rights, Privileges, Restrictions and Conditions Attached to the Offeror Preferred Shares and the Offeror Converted Preferred Shares” appended hereto as Annex A.

Excerpt: Conversion Terms

Subject to the Offeror’s right to redeem the Offeror Preferred Shares, the holders of Offeror Preferred Shares will have the right, at their option, to convert their Offeror Series AM Preferred Shares.f The holders of each series of Offeror Converted Preferred Shares will be entitled to receive floating rate, cumulative, preferential cash dividends, if, as and when declared by the Offeror Board, payable quarterly on the last day of March, June, September and December in each year , in the amount per share determined by multiplying the applicable Floating Quarterly Dividend Rate for such series of Offeror Converted Preferred Shares by $25.00. The Floating Quarterly Dividend Rate will be equal to the sum of the T-Bill Rate plus 2.09% in the case of the Offeror Series AN Preferred Shares, 3.09% in the case of the Offeror Series AP Preferred Shares and 2.64% in the case of the Offeror Series AR Preferred Shares (in each case, calculated on the basis of the actual number of days in the applicable Quarterly Floating Rate Period divided by 365) determined as of the 30th day prior to the first day of the applicable Quarterly Floating Rate Period. See the “Rights, Privileges, Restrictions and Conditions Attached to the Offeror Preferred Shares and the Offeror Converted Preferred Shares” appended hereto as Annex A.

The Series AN Preferred Shares will pay for each quarterly period beginning with the quarterly period from and including March 31, 2016 up to but excluding June 30, 2016, as and when declared by the Board of Directors of BCE, a quarterly floating cash dividend based on the T-Bill Rate for such quarterly period plus 2.09%, calculated in accordance with the articles of BCE. The floating dividend rate applicable to the Series AN Preferred Shares for the quarterly period beginning on March 31, 2016 is 0.63625% (annual rate of 2.552% based on an initial T-Bill Rate of 0.462%). The Series AN Preferred Shares will be listed on the Toronto Stock Exchange under the symbol BCE.PR.N and will start trading at the opening of the market on March 31, 2016.