BCE Inc. announced that all of its floating‑rate cumulative redeemable first preferred shares, Series AN, will be converted into fixed‑rate cumulative redeemable first preferred shares, Series AM, on March 31, 2026. The conversion is on a one‑for‑one basis, with 2,276 of the 8,802,551 Series AM shares and 348,545 of the 948,622 Series AN shares tendered for conversion. Any Series AN shares not tendered will automatically convert, leaving fewer than one million Series AN shares outstanding.
Under the new structure, Series AM shares will pay a fixed quarterly dividend based on an annual rate of 4.837 %. The dividend will be declared for a five‑year period beginning March 31, 2026, and the shares will continue to trade on the Toronto Stock Exchange under the symbol BCE.PR.M. The fixed dividend provides investors with a predictable income stream and simplifies the preferred‑share hierarchy.
The conversion aligns with BCE’s long‑term capital‑structure strategy. By moving from floating‑rate to fixed‑rate preferred shares, BCE reduces exposure to rising interest rates and stabilizes its cost of capital. The change also supports the company’s deleveraging plan, which targets a net debt leverage ratio of 3.5× by the end of 2027 and 3.0× by 2030. The fixed dividend and simplified structure are intended to enhance financial flexibility as BCE invests heavily in advanced fibre, wireless networks and a new 300 MW data‑center in Saskatchewan to support AI‑driven services.
BCE’s broader strategy includes significant capital expenditures in AI and network infrastructure, positioning the company to capture growth in high‑margin digital services. The preferred‑share conversion is a routine but material step that signals management’s confidence in the company’s ability to fund these initiatives while maintaining a disciplined balance sheet. The move is not expected to impact BCE’s operating results in the short term, but it will influence the company’s debt‑equity mix and future dividend policy.
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