BCE Preferred Share Conversion
BCE Announces Conversion of Series AJ Preferred Shares to Fixed-Rate Series AI by August 2026
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BCE Inc., Canada's largest communications company, has announced that all of its floating-rate Series AJ Preferred Shares will convert into fixed-rate Series AI Preferred Shares on August 4, 2026, according to Northern News. The switch happens on a one-for-one basis, meaning each Series AJ share becomes one Series AI share.
The Series AI Preferred Shares will keep trading on the Toronto Stock Exchange under the ticker symbol BCEPRI, Recorder reported. BCE trades on both the TSX and the New York Stock Exchange under the symbol BCE.
All Series AJ Shares Swept Into Fixed-Rate Conversion
No Series AJ Preferred Shares will survive the August 4, 2026 deadline. BCE confirmed that any remaining Series AJ shares will be automatically converted into Series AI shares, according to Edmonton Sun. Shareholders did not need to take action for the automatic conversion to apply.
The conversion is subject to the terms and conditions already attached to those shares, Brantford Expositor noted. BCE structured the deal so that every single floating-rate Series AJ share disappears and is replaced by a fixed-rate Series AI share.
Fixed Rate Replaces Floating Rate for BCE Preferred Shareholders
The key change for shareholders is the move from a floating interest rate to a fixed one. Floating rates go up and down with the market. Fixed rates stay the same. For preferred shareholders, a fixed rate means more predictable income from their shares.
BCE's Series AI shares are Cumulative Redeemable First Preferred Shares. "Cumulative" means missed dividend payments must be paid out before common shareholders get anything. This gives Series AI holders a layer of protection, according to Pembroke Observer.
Share Certificates Returned to Shareholders Who Converted
Registered shareholders who chose to convert their Series AI Preferred Shares will get their share certificates back from TSX Trust Company, Leader-Post reported. TSX Trust Company acts as BCE's transfer agent and handles the paperwork for the swap.
Shareholders who held their shares through a broker or financial institution may not receive physical certificates. Those shares are typically held in electronic form. Investors with questions were advised to contact TSX Trust Company directly, according to Montreal Gazette.
BCE Preferred Shares Remain Listed on Toronto Stock Exchange
The Series AI Preferred Shares will continue to trade on the TSX under BCEPRI after the conversion. No new listing is needed. The ticker stays the same, making the transition seamless for investors tracking the stock, Calgary Herald reported.
BCE is a major Canadian telecom and media company. Its preferred shares are popular with income-focused investors who want stable dividends. The move to a fixed rate could make Series AI shares more attractive to that group, according to Whitecourt Star.
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