BlackBerry, the Canadian technology company, has announced plans for a $160 million private offering to fund the purchase of outstanding debentures. The company will offer Convertible Senior Notes due in 2029 to qualified institutional investors. The initial purchasers will have the option to buy an additional $25 million of the notes. The proceeds from the offering will be used to repay or repurchase $150 million worth of 1.75% extendible convertible unsecured debentures that are due next month.
Following the announcement, BlackBerry shares fell in after-hours trading. Wall Street analysts have mixed views on the company, with some maintaining a neutral stance and others predicting a decline in the stock price. However, BlackBerry has experienced a positive trend in its stock price over the past three months, increasing by 2.6%, indicating improved sentiment among investors.
BlackBerry’s stock has declined by around 17% over the past year. At the time of publication, the stock was down by 13.80% in after-hours trading, at $3.06 per share.
In conclusion, BlackBerry is seeking to raise $160 million through a private offering to fund the repayment or repurchase of its outstanding debentures. While some analysts have a bearish outlook on the company’s stock, the recent upward trend in BlackBerry’s stock price suggests growing confidence among investors.
