Blackberry shakes off Heins, raises USD1 billion via convertible notes after Fairfax deal falls
A press release this morning indicated that Blackberry Ltd had raised USD1 billion in capital commitment after a definitive agreement with Fairfax Holdings fell through. The amount was raised by selling convertible notes to Fairfax and other institutional investors.
The sale would have Fairfax and the rest of the investors placing USD1 billion in debentures. Fairfax itself would acquire an ownership stake worth USD250,000 via the debentures.
The sale of convertible notes also saw Blackberry cheif executive officer Thorsten Heins leaving his post. Heins would be replaced by former chairman and CEO of Sybase John Chen, who would be acting as an interim CEO.
Moreover, terms of the convertible notes sale would also see some management changes in its board of directors. Fairfax CEO Prem Watsa would be appointed as Lead Director of the Board, while board member David Kerr would leave together with Heins.