Home / Features / BlackBerry Limited (NASDAQ:BBRY) Would Rise Around $605M by selling convertible Debentures To Fairfax Financial Shareholder- Medtronic (NYSE:MDT)

BlackBerry Limited (NASDAQ:BBRY) Would Rise Around $605M by selling convertible Debentures To Fairfax Financial Shareholder- Medtronic (NYSE:MDT)

BlackBerry Limited (NASDAQ:BBRY) [Trend Analysis] knocking active thrust in leading trading session, shares a decrease of -0.13% to 7.97 with around 2.43 Million shares have changed hands in this session. Troubled smartphone maker, BlackBerry (BBRY) reported that it has stated it would rise around $605M by selling convertible debentures to shareholder Fairfax Financial Holdings Ltd and other investors. The Canadian firm will as well redeem on September 2 around $1.25B worth of outstanding debentures carrying a coupon of 6%, it stated on Friday. The new debt that BlackBerry aims to issue will have a coupon of 3.75% and it will be due in November 2020.

The firm stated, If all of the new debt is converted into stock, it will represent about 11.57 percent of BlackBerry’s outstanding shares. FairFax, led by well-known contrarian investor Prem Watsa, is BlackBerry’s second largest shareholder with a stake of about 8.9 percent, according to Reuters data.

In July, the firm unveiled a second Android-based handset, which combines Alphabet Inc’s popular software and broad app catalog with its security and productivity features at a lower price. BlackBerry Chief Executive John Chen has expressed confidence that the firm’s trimmed-down handset business can meet its September target to turn profitable. The stock is going forward its fifty-two week low with 33.72% and lagging behind from its 52-week high price with -15.75%.

Ratio Analysis

The co stands at price to sale ratio of 2.21 that signifies the value placed on each dollar of a firm’s sales or incomes; it is most relevant ratio to compare companies in similar sector. It has price to book ratio of 1.63, which gauges the market price of a share over its book value.

The firm has price volatility of 2.16% for a week and 2.16% for a month. Narrow down focus to firm performance, its weekly performance was -0.75% and monthly performance was 4.59%. The stock price of BBRY is moving up from its 20 days moving average with 0.49% and isolated positively from 50 days moving average with 9.77%.

Medtronic plc (NYSE:MDT) [Trend Analysis] retains strong position in active trade, as shares scoring 1.42% to $86.60 in a active trade session, while looking at the shares volume, around 6.18 Million shares have changed hands in this session. On behalf of its indirect, wholly-owned subsidiary HeartWare International, Medtronic plc (MDT) announced that in connection with the completion of the acquisition of HeartWare by Medtronic, HeartWare has commenced an offer to repurchase, at the option of each holder, any and all of its outstanding 3.50% Convertible Senior Notes due 2017 and 1.75% Convertible Senior Notes due 2021. The firm has institutional ownership of 84.80%, while insider ownership included 0.10%. MDT attains analyst recommendation of 2.00 with week’s performance of -0.51%. Investors looking further ahead will note that the Price to next year’s EPS is 11.01%.


About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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