[zephyr613]

Trading halted due to "news coming" - No comments here? This is where I come to review the $'s and business related side of BBRY, the emotional side of me watches the other forum posters...

Surprised..

[tmurphx5]

Yeh, could be an interesting EOD and weekend discussing any implications

Passport running on 10.3.2. 2876

[TGIS]

Trading halted due to "news coming" - No comments here? This is where I come to review the $'s and business related side of BBRY, the emotional side of me watches the other forum posters...

Surprised..

So that means some kind of massive SP change if trade was halted.

[Corbu]

https://ca.finance.yahoo.com/news/bl...175700100.html
BlackBerry Announces Redemption of Existing Convertible Debentures and Issuance of New Convertible Debentures

August 26, 2016 13:56 ET

WATERLOO, ONTARIO--(Marketwired - Aug. 26, 2016) - BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a global leader in secure mobile communications, today announced the amendment of the indenture governing its 6% unsecured convertible debentures (BB.DB.U) (the "6% Debentures") to permit optional redemption prior to November 13, 2016. Additionally, there will be an issuance of a notice of redemption to holders of the 6% Debentures pursuant to which BlackBerry will redeem the entire outstanding principal amount of the 6% Debentures on September 2, 2016 (the "Redemption Date"). As of the date hereof, approximately USD$1.245 billion aggregate principal amount of 6% Debentures remains outstanding.

The 6% Debentures will be redeemed on the Redemption Date at a redemption price of 106.7213% of the outstanding principal amount of the Debentures. The redemption price includes all of BlackBerry's obligations in respect of principal and interest, and no additional amounts will be payable under the 6% Debentures. BlackBerry may revoke the redemption notice at any time prior to the close of business on the business day prior to the Redemption Date. The normal course issuer bid for the 6% Debentures announced by BlackBerry on August 4, 2016 will terminate upon the completion of the redemption.

Holders of 6% Debentures remain entitled to convert their 6% Debentures into common shares of BlackBerry ("Common Shares") at a conversion price of USD$10.00 per Common Share at any time on or prior to September 1, 2016, pursuant to the terms of the 6% Debentures. Based on the conversion price, BlackBerry expects that none of the 6% Debentures will be converted.

BlackBerry also announced that it has entered into an agreement pursuant to which Fairfax Financial Holdings Limited ("Fairfax") and other institutional investors will subscribe for 3.75% unsecured convertible debentures of BlackBerry (the "3.75% Debentures") on a private placement basis for an aggregate subscription price of USD$605 million. The transaction is expected to be completed on September 2, 2016. The 3.75% Debentures will be convertible into common shares of BlackBerry at a price of USD$10.00 per Common Share and will be due on November 13, 2020. Based on the number of Common Shares currently outstanding, if all of the USD$605 million of 3.75% Debentures were converted, the Common Shares issued upon conversion would represent approximately 11.57% of the Common Shares outstanding after giving effect to the conversion. The other terms of the 3.75% Debentures are substantially identical to those of the 6% Debentures, except that the 3.75% Debentures are not redeemable prior to maturity.

"The restructuring of our convertible debt will enable us to significantly reduce our interest expense and potential future dilution for our shareholders," said John Chen, Executive Chairman and CEO, BlackBerry. "I am pleased that Fairfax will continue as BlackBerry's leading lender, reinforcing its ongoing commitment to the company as we continue to execute on our strategy of pursuing growth and sustainable profitability."

The closing of the transaction is subject to customary conditions, including approval from the Toronto Stock Exchange.

In light of Fairfax's interest in the 6% Debentures being redeemed and its subscription for 3.75% Debentures, these transactions are "related party transactions" that will be exempt from the minority approval and valuation requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions of the Canadian Securities Administrators. BlackBerry intends to complete these transactions in fewer than 21 days in order to achieve the financing objectives described above.

[zephyr613]

https://ca.finance.yahoo.com/news/bl...175700100.html
BlackBerry Announces Redemption of Existing Convertible Debentures and Issuance of New Convertible Debentures

You think that is the news? I am watching this very closely and the "talking heads" are saying how very odd it is for trading to be halted in the middle of the day on a Friday no less.

[Corbu]

IIROC Trade Resumption / L'OCRCVM permet la reprise de la negociation - BB (all issues)

[Andrew4life]

I think it was halted because it deals with the potential of stock trades relating to the debentures that can be traded in for shares.

If this is the news it's pretty good news. They cut their lending costs in half. Or my rough estimate of $52 million in savings per year for the duration of the debt.

Posted via CB10

[Ecm]

[INFO]Gentlemen,
There's a discussion thread here, in case you'd like to add your opinions for the less experienced members: http://forums.crackberry.com/bbry-f3...alted-1084211/[/INFO]

[zephyr613]

BlackBerry restructures convertible debt to cut interest expenses; shares halted - MarketWatch

[tmurphx5]

Back trading and going back up to the opening price.

Passport running on 10.3.2. 2876

[bbjdog]

Just like to add that BlackBerry almost cut their lending in half, from 1B to 605 Million. Nice!

Thanks Corbu for timely posts! Cheers!

BlackBerry to sell $605 mln of convertible debt to Fairfax, others
2016-08-26 02:30:00 PM ET (Reuters)
* *
* *
Aug 26 (Reuters) - BlackBerry Ltd said on Friday it would raise about $605 million by selling convertible debentures to Fairfax Financial Holdings Ltd and other investors.

The Canadian smartphone maker also said it would redeem the roughly $1.25 billion worth of outstanding debentures carrying a 6 percent coupon on Sept. 2.

The new debt that BlackBerry plans to issue will carry a coupon of 3.75 percent and will be due in November 2020.

BlackBerry said that if all of the $605 million of new debt is converted into stock, it would represent about 11.57 percent of the company's outstanding shares.

FairFax, led by well-known contrarian investor Prem Watsa, is the second-largest shareholder in BlackBerry with a stake of about 8.9 percent, according to Thomson Reuters data. (Reporting by Arathy S Nair in Bengaluru; Editing by Savio D'Souza)

[Corbu]

Just like to add that BlackBerry almost cut their lending in half, from 1B to 605 Million. Nice!

Thanks Corbu for timely posts! Cheers!

Thanks mate. I was two minutes late...

[bbjdog]

Thanks mate. I was two minutes late...

That's not acceptable! You have to do better. The washroom break could have waited. LMAO

Siri doesn't compare to you mate.

[dusdal]

I think this makes a lot of sense.

6% was quite high and is more reasonable for the risk level of a company like BBRY 2 years ago. With the financial stabilization, the 3.75 is a better representation of current conditions.

It's going to take some of our cash, but it seems like a logical use of it.

[Superfly_FR]

On CB homepage :
http://m.crackberry.com/blackberry-a...ew-convertible

Cheers guys !
Will be back on Monday

Posted via the CrackBerry App for Android

[Mr BBRY]

The buyback of the debentures is great news to kick off the weekend! Bravo Chen for retiring half of those bonds and renegotiating the rate on the other half of them. As we anticipated, this will significantly reduce interest expenses and will have a nice impact on our bottom line. It also shows that Chen is comfortable and confident enough to spend cash and hold less debt to operate the business. I also like that this deal shows an implication of Prem / Fairfax's commitment to this company. All good things... but the market hardly flinches? I think we are setting up for a strong rally into Q4 of the calendar year. Cheers gang!

[BanffMoose]

I'm just glad they did this BEFORE quiet period started.

Posted via CB10

[spiller]

They have to pay 6% on the entire 1.2x B for early redemption. This cost will hit them in the next Q. It's an up front hit to have both lower debt outstanding and at a lower rate.

So won't they take a 75M hit on their cash for the next Q.

Then 605M @ 3.75% = 5.7M per quarter interest payment vs current 1.24B @ 6% = 18.6M per quarter saving 12M per quarter in interest carrying charges.

And 620M less cash to redeem that much debt. That is a 695M hit to their cash next Q including early redemption costs, less the 12M interest saving due to lower interest, net 683M less cash next quarter for this debenture swap.

Unless I have this wrong.... which is very plausible

[Seadog83]

How come when these debentures were announced, there was something like a 15-20% drop the day after if my mind recalls correctly, but now that half are retired, the rest renewed at better rates, there are crickets?

I never understood that drop, the net asset value of each share didn't change, but the market acted as if 25% more shares were written into existence, diluting their own.

I don't post often, and despite a decent sized position, have been immensely frustrated by this stock. While Chen is doing a great job I think, it's just annoying to see more or less equal pieces of news devastate the stock on one side, but then be a non-event on the other. I just keep on diligently waiting for Buffets old "weighing machine" axiom to play out. Even like half the news I'm reading about this just talk about BBRY raising new capital, taking on debt.

[bspence87]

I love today's news! Aside from the obvious financial benefits, it gives a lot of insight into the growing strength of the company.

For one, they've rushed this move to happen before the September ER, so as not to let the $10 conversions act as dilution, should the price rise over $10.

In addition, any of the 6% investors who were bought out now have additional cash to buy shares cheaper if they continue to believe in the turnaround, so we could see potential institutional position taking.

Obviously Chen feels more confident working with a lower cash balance moving forward.

One other note that I find very important is that BlackBerry removed the right to convert the debentures before expiry this time, giving BlackBerry four years to buy back the debentures, should the share price rise above $10. Once again, protecting shareholders from dilution.

Overall, tons of confidence shown by the management and big reason to believe we are about to see upward movement in the share price.

Posted via the CrackBerry App for Android

[theRock1975]

Rolling over this debt reduces interest expenses and allows them to make more strategic acquisitions.

It doesn't seem they ever needed this credit line. Seems like they are planning for more acquisitions. MOBL For $1/share ?

Posted via CB10

[b121]

Rolling over this debt reduces interest expenses and allows them to make more strategic acquisitions.

It doesn't seem they ever needed this credit line. Seems like they are planning for more acquisitions. MOBL For $1/share ?

Posted via CB10

I had a similar thought. Keeping half the debt on their books with a conversion option at $10 (if I read it correctly), doesn't seem bullish. I think financing an acquisition would be the best case scenario out of this.

Is this just manipulating their financial statements? Why can't the get debt without the conversion option? Why do they need more than $1B in cash if they are generating a lot of cash?

What am I missing? What do you guys thinkg?

(7250 -> 8703e -> 9530 -> 9550 -> 9650 -> 9930 -> PlayBook -> Z10 -> Z30 -> Classic -> PRIV)

[Corbu]

The five 'most-secure? smartphones in the world - The Economic Times

[BanffMoose]

I had a similar thought. Keeping half the debt on their books with a conversion option at $10 (if I read it correctly), doesn't seem bullish. I think financing an acquisition would be the best case scenario out of this.

Is this just manipulating their financial statements? Why can't the get debt without the conversion option? Why do they need more than $1B in cash if they are generating a lot of cash?

What am I missing? What do you guys thinkg?

Just like it is for all of us, anytime you can pay down debt its a good thing. Here, they paid down debt and refinanced the rest at a much lower interest rate. Nothing bad here. The original 6% bonds gave BlackBerry extra cushion in case they needed it, and turns out they didn't (or at least I don't think they did). If it weren't for the patience the market gave John Chen, it could easily have gone the other way. The new debt appears to have the same conversion terms as the original debt, so I think it's meant to be neutral.

As getting debt without the conversion option, this article may help (or may not):
https://finance.yahoo.com/news/wonde...160000020.html

[bbjdog]

The five 'most-secure? smartphones in the world - The Economic Times

What! My BB10 Passport didn't make the cut? Have to file a complaint to the writer. Lol