1. Jose Casiano's Avatar
    I keep getting some interesting articles from seeking alpha, I'm still trying to understand all of this business talk take a look at the summary and if you want to read more check the link below. And if you can help clarify this a bit more for people learning on their own about businesses and stocks and what not please do.

    Summary

    BlackBerry is redeeming $1.245 billion in 6% convertible debentures and replacing them with $605 million in 3.75% convertible debentures.

    The company will pay an additional $84 million upfront to redeem the debentures at a 6.7213% premium, but BlackBerry will save $52 million in annual interest for $134 million total savings.

    BlackBerry could have reduced the premium to 4% by redeeming the debentures in November.

    However, the potential additional savings from doing so appears fairly low since it appears that BlackBerry is getting a slightly favorable rate on its new debentures compared to market prices.

    Overall, the debenture transactions are a modest positive for BlackBerry that result in further solidification of its financial status. However, the issue of improving its software growth remains.

    Link An Analysis Of BlackBerry's Debenture Transactions - BlackBerry Ltd. (NASDAQ:BBRY) | Seeking Alpha

    Posted via CB10
    08-29-16 08:59 AM
  2. Dunt Dunt Dunt's Avatar
    BlackBerry could have potentially saved a bit more by redeeming the debentures in November, but there would also be a risk that the company would save a bit less. If BlackBerry's stock was around $7 in November, the conversion feature would be worth less and BlackBerry would probably need to offer closer to 5% on its new debentures.
    In the long run this was good for the company.... in the short term I think Chen knows that hardware is going to keep the stock down.
    08-29-16 10:12 AM
  3. Jose Casiano's Avatar
    In the long run this was good for the company.... in the short term I think Chen knows that hardware is going to keep the stock down.
    Yeah I'm also seeing some other articles on seeking alpha that seem quite positive. We will have to see in December I was reading another one here.

    http://seekingalpha.com/article/4002...67c18f9d0&dr=1

    I like to look at BlackBerry and try to learn a bit about stocks and how they react but I don't understand a lot still.

    Posted via CB10
    08-29-16 01:14 PM

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