BlackBerry enters into debt sale deal

By VCPOST Staff Reporter

Nov 08, 2013 11:29 AM EST

 Fairfax Financial Holdings Ltd. announced that it would no longer proceed with its USD4.7 billion offer to buy BlackBerry. According to Bloomberg, Fairfax Financial would instead arrange a USD1 billion bond deal to strengthen BlackBerry's financial position.

Other investors who would provide investment support for the USD1 billion debt sale included Qatar Holding LLC, Brookfield Asset Management Inc., Mackenzie Financial Corp., Markel Corp. and Canso Investment Counsel Ltd.

According to a report by Bloomberg, Canso would be investing USD300 million, Fairfax would be putting in USD250 million, and Mackenzie would be contributing USD 200 million. Meanwhile, Markel and Qatar Holding would both be investing USD100 million and Brookfield contributing USD50 million in the bond deal.

BlackBerry is obliged to pay its bond investors a termination fee ranging between USD135 million and USD250 million should it decide to sell the company.  

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