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Article about Blackberry


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Interesting article entitled: "How Blackberry Transformed from a Basket of Parts to a Money Making Cybersecurity Company"






I'm not sure that the article makes me feel any better about Prem's investment thesis, but it's worth a read in any case.




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Remember Fairfax holds $675mil in convertible debt which matures in November 2020, its only earning 3.75%. I wonder will they exercise or take the money?



I'm not sure that FFH will ultimately have a choice.  Through the Cylance acquisition, BB has used a fair chunk of its cash balance.  Will there be $1B of cash equivalents on the balance sheet in Nov 2020 which would enable BB to write a cheque to settle the converts?  If they don't have the cash on hand, is there anyone other than FFH that wants to lend money to BB?


My guess is that the converts get rolled over.  So, reprice the option component, bump up the coupon and push out the maturity for another 3 or 5 years.




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