Company is selling 3.75% four-year convertibles to Fairfax Financial
By Devika Patel
Knoxville, Tenn., Aug. 26 – BlackBerry Ltd. said it has arranged a $605 million private placement of 3.75% convertible debentures with Fairfax Financial Holdings Ltd. and other investors.
The convertibles mature on Nov. 13, 2020 and may be converted into common shares at $10.00 per share. The conversion price is a 25.31% premium to the Aug. 25 closing share price of $7.98.
Settlement is expected Sept. 2.
The company also said that its $1.25 billion of 6% convertible debentures will be redeemed at 106.7213 on Sept. 2.
“The restructuring of our convertible debt will enable us to significantly reduce our interest expense and potential future dilution for our shareholders," Blackberry executive chairman and chief executive officer John Chen said in a company news release.
"I am pleased that Fairfax will continue as BlackBerry's leading lender, reinforcing its ongoing commitment to the company as we continue to execute on our strategy of pursuing growth and sustainable profitability.”
BlackBerry is a mobile communications company based in Waterloo, Ont.
| Issuer: | BlackBerry Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | $605 million
|
| Maturity: | Nov. 13, 2020
|
| Coupon: | 3.75%
|
| Conversion premium: | 25.31%
|
| Conversion price: | $10.00
|
| Warrants: | No
|
| Investor: | Fairfax Financial Holdings Ltd.
|
| Pricing date: | Aug. 26
|
| Settlement date: | Sept. 2
|
| Stock symbol: | Nasdaq: BBRY
|
| Stock price: | $7.98 at close Aug. 25
|
| Market capitalization: | $4.18 billion
|
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