BlackBerry says Fairfax to buy $250 million more debentures

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blackberryFairfax Financial Holdings will buy additional convertible debentures worth USD 250 million in BlackBerry, offering respite to the struggling Canadian smartphone maker.

“Fairfax Financial Holdings has agreed to purchase, through its subsidiaries, an additional USD 250 million principal amount of six percent unsecured subordinated convertible debentures of BlackBerry,” BlackBerry said in a statement.

The transaction will be completed on or before January 16, 2014, it added.

The Prem Watsa-led firm is exercising a previously announced option linked to BlackBerry’s recent USD 1 billion debt financing.

Fairfax owns a 9.9 percent equity stake in BlackBerry.

For the third quarter ended November 30, 2013, the company’s revenues declined 56 percent to USD 1.19 billion.

In November last year, BlackBerry scrapped a sale plan and said it would instead raise as much as USD 1.25 billion through convertible debentures, which it would intend use for general corporate purposes.

Following the decision, the struggling handset maker has undergone a series of changes. Its CEO Thorsten Heins was replaced by John Chen. It also replaced COO Kristian Tear, CMO Frank Boulben and CFO Brian Bidulka as part of the reorganisation.

It has recently appointed Ron Louks as President, Devices and Emerging Solutions, who will report to Chen.