BlackBerry Abandons Sale, Replaces CEO

BlackBerry (BBRY_) shares are plunging, down 16.1% to $6.52 as the company is abandoning its sale to Fairfax Financial Holdings. Instead, it's selling $1 billion worth of convertible debt, with Fairfax buying $250 million worth of the offering, and CEO Thorsten Heins is on his way out. Under terms of the transaction, the debt will have a 28.7% premium to BlackBerry's shares as of Nov. 1, 2013, or $10 per share. The debt has a term of seven years, and represents approximately 16% of all BlackBerry's common stock, after the conversion. "Upon the closing of the transaction, John S. Chen will be appointed Executive Chair of BlackBerry's Board of Directors and, in that role, will be responsible for the strategic direction, strategic relationships and organizational goals of BlackBerry," the company said in a press release . "Prem Watsa, Chairman and CEO of Fairfax, will be appointed Lead Director and Chair of the Compensation, Nomination and Governance Committee and Thorsten Heins and David Kerr intend to resign from the Board at closing."
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