Tag Archives: Fairfax

BlackBerry Announces Completion of Acquisition of Additional U.S. $250 Million Debentures by Fairfax

BlackBerry Announces Completion of Acquisition of Additional U.S. $250 Million Debentures by Fairfax

This was just announced.

Press Release
BlackBerry Announces Completion of Acquisition of Additional U.S. $250 Million Debentures by Fairfax

WATERLOO, ONTARIO–(Marketwired – January 16, 2014) – 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.

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Fairfax to Purchase Additional Convertible Debentures

Fairfax to Purchase Additional Convertible Debentures

Fairfax to Purchase Additional Convertible Debentures

WATERLOO, ONTARIO–(Marketwired – January 08, 2014) – BlackBerry® Limited (NASDAQ: BBRY)(TSX: BB), a world leader in mobile communications, announced today that Fairfax Financial Holdings Limited has agreed to purchase, through its subsidiaries, an additional $250,000,000 principal amount of 6% unsecured subordinated convertible debentures of BlackBerry (the “Debentures”). The additional Debentures will be purchased pursuant to the exercise of a previously-announced option that was granted in connection with BlackBerry’s private placement of $1 billion principal amount of Debentures on November 13, 2013, and the transaction will be completed on or before January 16, 2014.

Prem Watsa Bought 129,000 $BBRY Shares on Christmas Eve

Prem Watsa Bought 129,000 $BBRY Shares on Christmas Eve

We have reported earlier that Mike Lazaridis, former CEO and co-founder of RIM sold 3.5 million shares of the company for approximately $27.4 million. And while Lazaridis may be exiting stage after nearly 30 years, guess who is adding his BBRY shares, Yes. Head of Fairfax Financial, and BlackBerry Director, Prem Watsa purchased 129,000 $BBRY shares in the open market this Christmas Eve.

The purchase of the shares cost him $994,590.

Who are the new Partners Listed in $1 Billion BlackBerry Financing

Who are the new Partners Listed in $1 Billion BlackBerry Financing

Everyone is wondering who other than Fairfax have join in the $1 Billion Financing to BlackBerry, Fairfax Financial has spearheaded a $1 billion financing plan to help with BlackBerry’s “cash burn.” Until it was revealed yesterday that Qatar Holdings is one of the partners who aided in funding, Fairfax Financial was the only known party.

However, in the official filing with the U.S. Securities and Exchange Commission, all of the parties and their monetary contribution is revealed:

•Fairfax Financial Holdings Limited: $250,000,000
•Mackenzie Financial Corporation: $200,000,000
•Canso Investment Counsel Ltd.: $300,000,000
•Markel Corporation: $100,000,000
•Brookfield Asset Management Inc.: $50,000,000
•Qatar Holding LLC: $100,000,000

BlackBerry Says Is Abandoning Sale Process, CEO Steps Down, BlackBerry Receives Investment of U.S. $1 Billion from Fairfax Financial and Other Institutional Investors

BlackBerry Says Is Abandoning Sale Process, CEO Steps Down

BlackBerry has announced today that they have entered into a $1-billion investment agreement with Fairfax Financial and other investors. BlackBerry has concluded their review of strategic alternatives and will also be making changes to the board. John S. Chen will be appointed Executive Chair and Interim CEO while Fairfax CEO Prem Watsa will be appointed Lead Director. The Current BlackBerry CEO Thorsten Heins will step down as CEO at closing today.

Press Release

John S. Chen to be Appointed Executive Chair of BlackBerry’s Board of Directors and Interim CEO; Prem Watsa to be Appointed Lead Director

Company Concludes Review of Strategic Alternatives and Announces Changes to Board and Leadership Team

WATERLOO, ONTARIO and TORONTO, ONTARIO–(Marketwired – November 04, 2013) – BlackBerry (NASDAQ: BBRY)(TSX: BB), a world leader in the mobile communications market, today announced that it has entered into an agreement pursuant to which Fairfax Financial Holdings Limited (“Fairfax”) and other institutional investors (collectively, the “Purchasers”) will invest in BlackBerry through a U.S. $1 billion private placement of convertible debentures. Fairfax has agreed to acquire U.S. $250 million principal amount of the Debentures. The transaction is expected to be completed within the next two weeks.

Under the terms of the transaction, the Purchasers will subscribe for U.S. $1 billion aggregate principal amount of 6% unsecured subordinated convertible debentures (the “Debentures”) convertible into common shares of BlackBerry at a price of U.S. $10.00 per common share (the “Transaction”), a 28.7% premium to the closing price of BlackBerry common shares on November 1, 2013. The Debentures have a term of seven years. Based on the number of common shares currently outstanding, if all of the U.S. $1 billion of Debentures were converted, the common shares issued upon conversion would represent approximately 16% of the common shares outstanding after giving effect to the conversion.

Upon the closing of the transaction, John S. Chen will be appointed Executive Chair of BlackBerry’s Board of Directors and, in that role, will be responsible for the strategic direction, strategic relationships and organizational goals of BlackBerry. Prem Watsa, Chairman and CEO of Fairfax, will be appointed Lead Director and Chair of the Compensation, Nomination and Governance Committee and Thorsten Heins and David Kerr intend to resign from the Board at closing.

In addition, Mr. Heins will step down as Chief Executive Officer at closing and Mr. Chen will serve as Interim Chief Executive Officer pending completion of a search for a new Chief Executive Officer.

Today’s announcement marks the conclusion of the review of strategic alternatives previously announced on August 12, 2013.

“Today’s announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors,” said Barbara Stymiest, Chair of BlackBerry’s Board. “The BlackBerry Board conducted a thorough review of strategic alternatives and pursued the course of action that it concluded is in the best interests of BlackBerry and its constituents, including its shareholders. This financing provides an immediate cash injection on terms favorable to BlackBerry, enhancing our substantial cash position. Some of the most important customers in the world rely on BlackBerry and we are implementing the changes necessary to strengthen the company and ensure we remain a strong and innovative partner for their needs.”

Ms. Stymiest added, “I am also pleased that John Chen, a distinguished and proven leader in the technology industry, has agreed to serve as BlackBerry’s Executive Chairman. I look forward to continuing to serve BlackBerry as a member of its Board of Directors and chair of the Board’s Audit and Risk Management Committee. On behalf of the Board, I would also like to thank Thorsten for his service to BlackBerry over the past six years. Under his leadership, BlackBerry established a more efficient cost structure, developed new products, saw the adoption of BES 10 and delivered the BlackBerry 10 platform. These are all significant accomplishments. We are grateful for his contributions and wish him well in his future endeavors.”

“Fairfax is a long-time supporter, investor and partner to BlackBerry and, with this investment, reinforces its deep commitment to the future success of this company,” said Prem Watsa, Chairman and CEO of Fairfax. “I look forward to rejoining the BlackBerry Board and to working with the other directors and management team, under John Chen’s leadership, to shape the next stage of BlackBerry’s strategy and growth.”

“I am pleased to join a company with as much potential as BlackBerry,” said Mr. Chen. “BlackBerry is an iconic brand with enormous potential – but it’s going to take time, discipline and tough decisions to reclaim our success. I look forward to leading BlackBerry in its turnaround and business model transformation for the benefit of all of its constituencies, including its customers, shareholders and employees.”

The closing of the transaction is subject to customary conditions, including approval from the Toronto Stock Exchange.

Pursuant to the Transaction agreement, the investors have an option to purchase up to an additional U.S. $250 million principal amount of Debentures within 30 days following closing. If an additional U.S. $250 million of Debentures is issued and all U.S. $1.25 billion of Debentures were converted, the common shares issued upon conversion would represent approximately 19.2% of the common shares after giving effect to the conversion, based on the number of common shares currently outstanding.

BlackBerry considers breakup if Fairfax fails to find funding

BlackBerry considers breakup if Fairfax fails to find funding

BlackBerry is reportedly warming up to the idea of breaking the company apart and selling off the pieces. The news comes from an unnamed inside source speaking with Bloomberg, and it is seemingly a direct result of concerns that Fairfax Financial may not be able to secure funding for the buyout it agreed to in late September. BlackBerry and Fairfax announced last month that the latter would purchase BlackBerry and all of its assets for $9 a share, or about $4.7 billion. Fairfax had not yet secured financing for the deal, however, and now other companies such as Google, Samsung and Intel have shown interest in acquiring pieces of BlackBerry’s business. ”If you break up the company, you’re going to get more than the company is worth right now,” Albert Fried & Co. analyst Sachin Shah told Bloomberg. “Breaking it up sounds more appetizing for all involved.” If the Fairfax deal doesn’t go through, BlackBerry will be owed a $0.30 per share breakup fee.

Source:Bloomberg