[kevinnugent]

Exclusive: Qatari sovereign fund invests in BlackBerry debt offer - source - Yahoo!7


Exclusive: Qatari sovereign fund invests in BlackBerry debt offer - source
November 7, 2013, 3:42 am


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Reuters Research in Motion Chief Executive Officer Thorsten Heins is silhouetted during the BlackBerry World event in Orlando May 1, 2012. REUTERS/David Manning(Reuters) - Qatar Holding LLC is among a handful of investors that have put money into BlackBerry Ltd's $1 billion convertible debt offering, a source familiar with the financing plan said on Wednesday.

The Qatari sovereign wealth fund bought as much as $200 million of the offering, in which Fairfax Financial Holdings Ltd, BlackBerry's largest shareholder, has committed $250 million.

(Reporting by Dinesh Nair and Mirna Sleiman; Writing by Euan Rocha; Editing by Gerald E. McCormick)

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[grover5]

Why is that news?

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[CherokeeMarty]

Are you aware of how many people in the Middle East use Blackberry instead of, say, iPhone? It has to do with BBM messaging pin# to pin#. Where I live, there are a lot of Middle Eastern students, and they all carry Blackberrys. Makes perfect sense to me.

[kevinnugent]

Why is that news?

Posted via CB10

Some people who are interested in Blackberry would be interested in hearing who the consortium of lenders are. You aren't? Fine. Don't read - and especially don't comment about it. Easy.

[grover5]

Some people who are interested in Blackberry would be interested in hearing who the consortium of lenders are. You aren't? Fine. Don't read - and especially don't comment about it. Easy.

Actually I was questioning why it was considered news worthy to yahoo. But as long as you're so defensive I guess I can let you know it's all ok and no need to get in a huff.

Posted via CB10

[kevinnugent]

I'd say Yahoo consider it a bit of a coup to discover who the other parties involved are - well one at least.

[h20work]

I'm surprised none of the canadian pension funds stepped up to the plate.

[kevinnugent]

I'm surprised none of the canadian pension funds stepped up to the plate.

They may have - only $450m has been accounted for.

[Pete The Penguin]

What happens if the full 1 billion of the loan can't be raised?

[Sith_Apprentice]

I'd say Yahoo consider it a bit of a coup to discover who the other parties involved are - well one at least.

Still not really sure why it matters who lent the money? They dont actually control any day to day interest in the company, no voting rights as stock holders etc (because of the loan, at this time). They thought it was a good investment, and proceeded with it.

[Dunt Dunt Dunt]

Still not really sure why it matters who lent the money? They dont actually control any day to day interest in the company, no voting rights as stock holders etc (because of the loan, at this time). They thought it was a good investment, and proceeded with it.

It's interesting to know who is putting some "faith" into BlackBerry.

[dguy123]

I don't know about faith.
6% minimum annual return seems pretty decent to me, and with the option to convert the debt to shares at $10.00 regardless of their value at the time gives a great potential upside.
By using a debt vehicle, these folks put themselves in front of all other shareholders should things not go well.
Shareholders assume the risk for them.

They are taking very little risk themselves.

The debt service will cost BlackBerry 60m/y.

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[BoldPreza]

Hey at least it's secure money!

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[imcurved]

Nobody will put out that much money into a company that is going through turbulent time, without an attractive return. On top of that, they must believe in BlackBerry. I can't wait to hear Mr. Chen's plan.

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[irweezyy]

I don't know about faith.
6% minimum annual return seems pretty decent to me, and with the option to convert the debt to shares at $10.00 regardless of their value at the time gives a great potential upside.
By using a debt vehicle, these folks put themselves in front of all other shareholders should things not go well.
Shareholders assume the risk for them.

They are taking very little risk themselves.

The debt service will cost BlackBerry 60m/y.

Posted via CB10

You can make more money doing private mortgages so this isn't about money alone, there's probably a little faith involved

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[undone]

Investing in something you want to see stay around. Most would probably stay the risk is medium to high. So I would have to go with some BB faithful (or even Chen faithful)

[Sith_Apprentice]

You can make more money doing private mortgages so this isn't about money alone, there's probably a little faith involved

Posted via CB10

There is not much of a downside for them, whereas with stock there is. They are giving a loan, with a 6% return, on the low end. If something catastrophic happens and BB implodes, they get cut the line passes to the money from a sale of assets (worth many times the 200 million they lent).

[playbookster]

Big bad oil interests.

Posted from my Z30