BlackBerry concludes raised U.S. $ 1 billion and announced cutting 200 ... - Teletime

The BlackBerry announced on Friday, 14 which concluded before the deadline, the uptake of funding of $ 1 billion made through the issuance of convertible debentures. The contribution was obtained by agreement with Fairfax Financial Holdings and other shareholders. With the completion of the transaction, the financial group holds 16% of the share capital of the BlackBerry. BMO Capital Markets was the coordinator agent and the distribution of the debentures.

As previously announced, the Fairfax is committed to purchase $ 250 million of debentures and other investors, the remainder. The conversion price of the bonds into shares was set $ 10, which represents a premium of 28.7% over the closing price of the securities on the Nasdaq on the 1st of this month. The funding was expected to be completed within 30 days.

The transaction was the way found by the Canadian manufacturer of smartphones to avoid selling to own Fairfax, who had signed a letter of intent to purchase the amount of U.S. $ 4.7 billion, or by another bidder – China’s Lenovo was one of the candidates to take over the BlackBerry, so that it had signed a confidentiality agreement that allowed to analyze the company’s accounts.

“I am excited to be joining this iconic brand at such an important time in its history,” said John S. Chen, who became interim chief executive of BlackBerry, after the completion of the financing. “I look forward to leading the BlackBerry in the pursuit of a successful transformation and retrieve the position of innovator in the market. Believe in the value of the brand and I am confident that we will rebuild the BlackBerry for the benefit of all our customers.”

Chen will hold the position until completing the restructuring process and the search for a new CEO. The agreement also provides that Prem Watsa, chairman of Fairfax Financial, has seat on the Board of Directors and integrate the company’s board.

One of the first measures of Chen, as part of the reorganization process, will be laid off 200 employees at its headquarters in Irving, Texas. Notification of adjustment and retraining of workers (Warn, its acronym in English) was filed on the 5th, according to the website All Things Digital. In the coming months, are expected to more job cuts, which should arrive by the thousands, according to the restructuring plan.