BlackBerry Ltd. said it will notify holders of its 6% unsecured convertible debt that it will redeem all of the principal amount of the debt on Sept. 2. The debt will be redeemed at a price of 106.7212% of the outstanding principal amount. Prior to the redemption, the debt holders remain entitled to convert the debt to common stock at a price of $10.00 a share. The stock, which has been halted for news, last traded at $7.92, which is 21% below the conversion price. Separately, BlackBerry said it entered into an agreement with Fairfax Financial Holdings Ltd. and other institutional investors to issue 3.75% unsecured convertible debt for a total price of 4605 million. The deal is expected to close on Sept. 2. The debt will be convertible to common stock at $10.00 a share, and will be due Nov. 13, 2020. "The restructuring of our convertible debt will enable us to significantly reduce our interest expense and potential future dilution for our shareholders," said Chief Executive John Chen. The stock, which is slated to resume trading at 2:30 p.m. ET, has dropped 15% year to date, while the S&P 500 had gained 6%.
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