- BlackBerry stock fell early Wednesday after announcing a private offering of $160 million in five-year convertible bonds
- The Waterloo, Ontario-based tech firm’s stock fell more than 17 per cent, or 83 cents on news its senior notes offering is only for those reasonably believed to be qualified institutional buyers
- In a news release, BlackBerry’s team stated that it also expects to grant the initial purchasers of the notes the option to purchase up to an additional $25 million aggregate principal amount of the notes
- BlackBerry stock opened trading at C$4.31 per share
BlackBerry (TSX:BB) stock fell early Wednesday after announcing a private offering of $160 million in five-year convertible bonds.
The Waterloo, Ontario-based tech firm’s stock fell more than 17 per cent, or 83 cents on news its senior notes offering is only for those reasonably believed to be qualified institutional buyers.
In a news release, BlackBerry’s team stated it also expects to grant the initial purchasers of the notes the option to purchase up to an additional $25 million aggregate principal amount of the notes.
BlackBerry intends to use the net proceeds from the offering to fund the repayment or repurchase of its outstanding $150 million of extendible convertible unsecured debentures due in February and if any is left over, that will go to the usual corporate purposes.
The notes will be BlackBerry’s general unsecured obligations, even more of a priority than its obligations under the existing debentures. The notes will mature on Feb. 15, 2029, unless converted earlier.
The closing of the offering is still subject to TSX approval.
BlackBerry Ltd. provides intelligent security software and services to enterprises and govertnments around the world and secures more than 500 million endpoints including more than 235 million vehicles.
BlackBerry stock opened trading at C$4.31 per share and is down more than 30 per cent since this time last year.
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