BCE reports results of Series AI and AJ preferred share conversions

Rhea-AI Summary

BCE (TSX: BCE, NYSE: BCE) will convert all of its floating-rate Cumulative Redeemable First Preferred Shares, Series AJ, into fixed-rate Cumulative Redeemable First Preferred Shares, Series AI, on a one-for-one basis effective August 4, 2026.

Holders tendered 1,875 of 8,584,140 Series AI shares for conversion into Series AJ and 1,976,448 of 3,514,957 Series AJ shares for conversion into Series AI. As this would leave fewer than 2,000,000 Series AJ shares outstanding, all remaining Series AJ shares will be automatically converted to Series AI. The Series AI shares will pay a quarterly dividend for five years from August 4, 2026, based on an annual fixed dividend rate of 5.10% and will continue trading on the TSX under symbol BCE.PR.I.

Positive

• All Series AJ preferred shares unified into Series AI via automatic conversion on August 4, 2026
• Series AI dividend rate set at 5.10% annually, fixed for five years from August 4, 2026

Negative

• Floating-rate Series AJ eliminated, leaving only fixed-rate Series AI preferred shares outstanding

News Market Reaction – BCE

-1.26%

-1.26% Session close to close

In the Jul 23 session, BCE declined 1.26%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The AI-tagged record averaged a -0.2% 24-hour move across three events, adding a mixed historical co...

Analysis

The AI-tagged record averaged a -0.2% 24-hour move across three events, adding a mixed historical comparator to this preferred-share conversion; the key watchpoint is whether investors prioritize dividend terms over share-class mechanics.

Key Figures

Conversion ratio: one-for-one Series AI shares tendered: 1,875 shares Series AJ shares tendered: 1,976,448 shares +4 more

7 metrics

Conversion ratio one-for-one Series AJ to Series AI conversion

Series AI shares tendered 1,875 shares out of 8,584,140 Series AI shares

Series AJ shares tendered 1,976,448 shares out of 3,514,957 Series AJ shares

Remaining Series AJ threshold 2,000,000 shares threshold triggering automatic conversion

Fixed dividend rate 5.10% annual rate Series AI Preferred Shares

Dividend period five years beginning August 4, 2026

Conversion date August 4, 2026 Series AI and Series AJ preferred shares

Previous AI Reports

3 past events · Latest: Jun 18 (Positive)

Same Type Pattern 3 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 18	Sovereign AI deal	Positive	+0.0%	Landmark deal announced to advance sovereign AI infrastructure in Canada
Mar 16	AI network expansion	Positive	+0.2%	National AI network expansion with a 300 MW Saskatchewan data centre
Dec 18	AI media partnership	Positive	-0.8%	Partnership introduced AI-curated shoppable television experiences for Canadian viewers through Bell Media

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across three AI-tagged events, two diverged from the announcement direction and one aligned; the average 24-hour move was -0.2%.

Key Terms

floating-rate, fixed-rate, cumulative redeemable first preferred shares

3 terms

floating-rate financial

"all of its floating-rate Cumulative Redeemable First Preferred Shares"

A floating-rate is an interest rate on a loan, bond or other debt that moves up or down over time based on a regularly published reference number, so the payments change as market rates change. For investors, that means income and interest costs track current market conditions—like a thermostat that adjusts with room temperature—offering protection when rates rise but adding uncertainty about future cash flow.

fixed-rate financial

"into fixed-rate Cumulative Redeemable First Preferred Shares"

A fixed-rate is an arrangement where the interest or return on a loan, bond, or other financial obligation stays the same for a specified period instead of changing with market conditions. For investors, that means predictable payments and easier budgeting—like locking in a grocery price for a year—but it also means missing out if market rates fall, and it may be less attractive if inflation or rates rise significantly.

cumulative redeemable first preferred shares financial

"Cumulative Redeemable First Preferred Shares, Series AJ"

Cumulative redeemable first preferred shares are a type of preferred stock that pays regular dividends which, if skipped, accumulate and must be paid later before common shareholders receive dividends; think of it as a savings account where missed interest builds up. They rank ahead of common shares for dividend payments and in liquidation, and the issuer has the right to buy them back at a predetermined price or time, so they matter to investors seeking steady income with higher priority than common stock but limited upside and call risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MONTRÉAL, July 22, 2026 /PRNewswire/ -- BCE Inc. (TSX: BCE) (NYSE: BCE) today announced that all of its floating-rate Cumulative Redeemable First Preferred Shares, Series AJ ("Series AJ Preferred Shares") will be converted on August 4, 2026, on a one-for-one basis, into fixed-rate Cumulative Redeemable First Preferred Shares, Series AI ("Series AI Preferred Shares").

On June 16, 2026, notice was provided that holders of Series AI Preferred Shares could elect to convert their shares into Series AJ Preferred Shares and that holders of Series AJ Preferred Shares could elect to convert their shares into Series AI Preferred Shares, subject to the terms and conditions attached to those shares. A total of 1,875 of BCE's 8,584,140 Series AI Preferred Shares were tendered for conversion on August 4, 2026, on a one-for-one basis, into Series AJ Preferred Shares. In addition, a total of 1,976,448 of BCE's 3,514,957 Series AJ Preferred Shares were tendered for conversion on August 4, 2026, on a one-for-one basis, into Series AI Preferred Shares. As this would result in there being less than 2,000,000 Series AJ Preferred Shares outstanding, all remaining Series AJ Preferred Shares not tendered for conversion will, as per the terms and conditions attached to those shares, be automatically converted into Series AI Preferred Shares on August 4, 2026.

Registered shareholders who had elected to convert their Series AI Preferred Shares will have the share certificates representing the number of Series AI Preferred Shares tendered for conversion returned to them by TSX Trust Company.

The Series AI Preferred Shares will pay on a quarterly basis, for the five-year period beginning on August 4, 2026, as and when declared by the Board of Directors of BCE, a fixed cash dividend based on an annual fixed dividend rate of 5.10%. The Series AI Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbol BCE.PR.I.

About BCE
BCE is Canada's largest communications company¹, leading the way in advanced fibre and wireless networks, enterprise services and digital media. By delivering next-generation technology that leverages cloud-based and AI-driven solutions, we're keeping customers connected, informed and entertained while enabling businesses to compete on the world stage. To learn more, please visit Bell.ca or BCE.ca.

1 Based on total revenue and total combined customer connections.

Media inquiries:
Ellen Murphy
media@bell.ca

Investor inquiries:
Krishna Somers
krishna.somers@bell.ca

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SOURCE BCE Inc.

FAQ

What did BCE (TSX: BCE) announce about its Series AJ preferred shares on August 4, 2026?

BCE announced that all floating-rate Series AJ preferred shares will be converted into fixed-rate Series AI preferred shares on August 4, 2026. According to BCE, this follows shareholder elections that left fewer than 2,000,000 Series AJ shares outstanding.

What is the dividend rate for BCE's Series AI preferred shares (BCE.PR.I) after August 4, 2026?

The Series AI preferred shares will pay a fixed annual dividend rate of 5.10% for five years starting August 4, 2026. According to BCE, dividends are payable quarterly, if and when declared by its Board of Directors.

How many BCE Series AI and Series AJ preferred shares were tendered for conversion in 2026?

According to BCE, holders tendered 1,875 of 8,584,140 Series AI shares into Series AJ and 1,976,448 of 3,514,957 Series AJ shares into Series AI. These elections triggered the automatic conversion of all remaining Series AJ shares.

Why are all BCE Series AJ preferred shares being automatically converted into Series AI shares?

All remaining Series AJ shares are being converted because elections would leave fewer than 2,000,000 Series AJ shares outstanding. According to BCE, the share terms require automatic conversion into Series AI when that threshold is not met.

Will BCE's Series AI preferred shares remain listed after the 2026 conversion, and under what symbol?

Yes, the Series AI preferred shares will remain listed on the Toronto Stock Exchange under the symbol BCE.PR.I. According to BCE, these shares will continue trading with a fixed 5.10% annual dividend rate for five years from August 4, 2026.

What happens to BCE shareholders who elected to convert Series AI into Series AJ in 2026?

Registered shareholders who elected to convert Series AI into Series AJ will have their Series AI share certificates returned. According to BCE, TSX Trust Company will return certificates representing the number of Series AI shares tendered for conversion.