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BlackBerry said Nov. 4 that it entered into an agreement pursuant to which Fairfax Financial Holdings Ltd. and other institutional investors will invest in the company through a $1 billion private placement of convertible debentures.
According to a news release, Fairfax Financial has agreed to acquire $250 million principal amount of the debentures.
Under the transaction, the purchasers will subscribe for $1 billion aggregate principal amount of 6% unsecured subordinated convertible debentures convertible into common shares of BlackBerry at a price of $10.00 per common share, a 28.7% premium to the closing price of BlackBerry common shares on Nov. 1. The debentures have a term of seven years. Based on the number...