BlackBerry edges higher after upsized convertible debt deal

BlackBerry

25/01/2024 12:45

** U.S-listed shares of BlackBerry  BB.N  up 1% at $2.96
before the bell after Canadian tech co raises more capital than
targeted
    ** BlackBerry  BB.TO  late Weds announced pricing of $175
mln 3% convertible bonds (CBs) due 2029
    ** Initial conversion price of $3.88 represents approx 32.5%
premium to stock's last sale
    ** U.S.-listed shares on Weds tumbled 17.5% to $2.93, lowest
since Mar 2020, after co launched $160 mln deal
    ** Co to use net offering proceeds to fund repayment/
repurchase of its outstanding $150 mln 1.75% CBs due Feb 15,
2024
    ** BlackBerry has ~$1.7 bln market cap, per LSEG data
    ** In Dec, it reported surprise qtrly profit after earlier
in month naming cybersecurity unit head, John Giamatteo, as CEO
and scrapping planned spin off of its Internet of Things (IoT)
business
    ** U.S.-listed shares are down 17% to start 2024, and have
roughly halved from their 2023 intraday high hit last Sept
    ** Avg rating among 9 analysts covering BlackBerry is "hold"
and median PT is $4.50 - LSEG

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))