BlackBerry has concluded the process of selling debentures worth $1 billion with Prem Watsa-led Fairfax Financial Holdings and other institutional investors. The investors also have the option of purchasing an additional $250 million worth of debentures over the next 30 days.
Earlier, the loss making smartphone maker had decided not to sell off its business and instead wanted to raise about $1.25 billion through convertible debentures. BlackBerry will use the money raised through debentures for meeting operating expenses.
The company added that BMO Capital Markets acted as the sole book-runner and placement agent for the private placement of the debentures.
In a previous SEC filing, BlackBerry stated that Fairfax Financial Holdings, which has signed a provisional agreement with the company in September 2013 to acquire it for $4.7 billion, will invest $250 million in convertible debentures. Fairfax Financial Holdings has a 10 per cent in BlackBerry.
Besides, Mackenzie Financial Corporation will purchase debentures worth $200 million, Canso Investment Counsel, $300 million, Markel Corporation, $70 million, Brookfield Asset Management, $10 million and Qatar Holding, $100 million.
