News another step closerThings just seem to bop-bop-bopping along eh?
BCE to convert a portion of its Series AC Preferred Shares into Series AD Preferred Shares
09:18 EST Thursday, Feb 21, 2008
MONTREAL, Québec, Feb. 21 /CNW Telbec/ - BCE Inc. (TSX, NYSE: BCE) today announced that 10,755,445 of its 20,000,000 Cumulative Redeemable First Preferred Shares, Series AC ("Series AC Preferred Shares") have been tendered for conversion, on a one-for-one basis, into Cumulative Redeemable First Preferred Shares, Series AD ("Series AD Preferred Shares"). Consequently, BCE will issue 10,755,445 new Series AD Preferred Shares on March 1, 2008. The balance of the Series AC Preferred Shares that have not been converted will remain outstanding and will continue to be listed on The Toronto Stock Exchange under the symbol BCE.PR.C.
The Series AC Preferred Shares will pay on a quarterly basis, for the five-year period beginning on March 1, 2008, as and when declared by the Board of Directors of BCE, a fixed dividend based on an annual dividend rate of 4.60%.
The Series AD Preferred Shares will pay a monthly floating adjustable cash dividend for the five-year period beginning on March 1, 2008, as and when declared by the Board of Directors of BCE. The Series AD Preferred Shares will be listed on The Toronto Stock Exchange under the symbol BCE.PR.D and should start trading on a when-issued basis at the opening of the market on February 26, 2008.
Under and subject to the terms and conditions of the Definitive Agreement entered into by BCE in connection with its acquisition by an investor group led by Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc., Madison Dearborn Partners, LLC and Merrill Lynch Global Partners, Inc., the purchaser has agreed to purchase all outstanding Series AC Preferred Shares for a price of $25.76 per share, together with accrued but unpaid dividends to the Effective Date (as such term is defined in the Definitive Agreement). The purchaser has also agreed, on and subject to the terms and conditions of the Definitive Agreement, to purchase all outstanding Series AD Preferred Shares for a price of $25.50 per share, together with accrued but unpaid dividends to the Effective Date. The Board of Directors of BCE has received opinions as to the fairness, from a financial point of view, of the consideration to be paid for the preferred shares from BCE's financial advisors.