Fairfax to buy additional debentures of $250m in BlackBerry

Tags: News
Fairfax Financial Holdings will buy additional convertible debentures worth $ 250 million in BlackBerry, offering respite to the struggling Canadian smartphone maker.

"Fairfax Financial Holdings has agreed to purchase, through its subsidiaries, an additional $ 250 million principal amount of six per cent unsecured subordinated convertible debentures of BlackBerry," BlackBerry said in a statement.

The transaction will be completed on or before January 16, 2014, it added.

The Prem Watsa-led firm is exercising a previously announced option linked to BlackBerry's recent $ 1 billion debt financing.

Fairfax owns a 9.9 per cent equity stake in BlackBerry.

For the third quarter ended November 30, 2013, the company's revenues declined 56 per cent to $ 1.19 billion.

In November last year, BlackBerry scrapped a sale plan and said it would instead raise as much as $ 1.25 billion through convertible debentures, which it would intend use for general corporate purposes.

Following the decision, the struggling handset maker has undergone a series of changes. Its CEO Thorsten Heins was replaced by John Chen. It also replaced COO Kristian Tear, CMO Frank Boulben and CFO Brian Bidulka as part of the reorganisation.

It has recently appointed Ron Louks as President, Devices and Emerging Solutions, who will report to Chen.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Banks must learn from past mistakes to promote financial inclusion

    Prime minister Narendra Modi launched a massive financial inclusion programme yesterday titled “pradhan mantri jan dhan yojana’ (PMJDY), that will

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

West Asia turmoil worries east Asia

From Beijing to Jakarta, from Manila to Tokyo, east Asian ...

Parvez Imam

Sowing the seeds of love for hatred

No wonder we have a whole lot of talking going ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture