Fairfax Financial Holdings is buying another $250 million worth of BlackBerry through unsecured subordinated convertible debentures. The bond purchase is in addition to the $1 billion previously purchased in November, and will likely be used by the company to secure any losses it experiences in the coming quarters.
BlackBerry’s CEO, John Chen, wants to turn the company profitable by early 2016, but before then has to invest in its enterprise products and secure infrastructure in order to attract more business customers.
The additional $250 million investment is said to be made by subsidiaries of Fairfax, which differs from the first round where six companies staked a claim.
Update – January 17th: BlackBerry has announced that the additional $250 Million (USD) debentures by Fairfax has been completed:
“BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a world leader in mobile communications, today announced the completion of the purchase by Fairfax Financial Holdings Limited, through its subsidiaries, of an additional U.S. $250 million principal amount of 6% unsecured subordinated convertible debentures of BlackBerry (the “Debentures”). The additional Debentures were purchased pursuant to the exercise of a previously-announced option that was granted in connection with BlackBerry’s private placement of U.S. $1 billion principal amount of Debentures on November 13, 2013.”
[source]Marketwired[/source]
MobileSyrup may earn a commission from purchases made via our links, which helps fund the journalism we provide free on our website. These links do not influence our editorial content. Support us here.
