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Transaction/Case Details

Fairfax leads investor group in US$1.25 billion investment in BlackBerry

DATE CLOSED

November 13, 2013

BUSINESS SECTOR

Financial Services

LEAD OFFICE

Toronto

VALUE

1.25 Billion USD


OVERVIEW

On November 13, 2013, Fairfax Financial and a group of investors completed the investment of US$1 billion into BlackBerry, with an option to invest another US$250 million within 30 days, provided that certain board and other governance change were made.  The debentures purchased are convertible into shares of the company and provide for a number of negative and positive covenants that will shape the governance of the company and how it is strategically positioned going forward.

According to regulatory filings, more than half of the money came from two institutional investors: US$300 million from Canso Investment Counsel Ltd. of Richmond Hill, Ontario, and US$250 million from Fairfax Financial Holdings Ltd., BlackBerry's largest shareholder.

Fairfax and the other investors later purchased an additional US$250 million of the interest-paying notes, which can be used to buy BlackBerry shares for US$10 each.

Fairfax, headquartered in Toronto, Ontario, is a financial holding company.

BlackBerry, headquartered in Waterloo, Ontario is a telecommunication and wireless equipment company.

McCarthy Tétrault LLP represented Fairfax Financial with a team led by David Tennant, and including Tina Benson, Oliver Borgers, Douglas Cannon, Garth Girvan, Jonathan Grant, Richard Higa, Alfred Macchione, Stefanie Morand, and Deandra Schubert.

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