Prem Watsa-led Fairfax owns 8.9 per cent of Blackberry and is the second largest shareholder of the company
Canada-based smartphone developer Blackberry Ltd plans to raise about $605 million through convertible debentures. These debentures will be sold to shareholder Fairfax Financial Holdings and various investors.
The company also intends to pay back it's outstanding debentures worth about $1.25 billion which carry a coupon of 6 per cent on September 2, 2016.
The latest issue of debentures will be due in November 2020 and will carry a coupon of 3.75 per cent.
According to Reuters data, Prem Watsa-led Fairfax owns 8.9 per cent of Blackberry and is the second largest shareholder of the company.
John Chen, Blackberry's chief executive, is confident about the latest Android-based handset and believes the September targets can turn profitable.
This model provides a combination of Alphabet's latest software and a broad variety of security and productivity feature applications at budget price.
Blackberry has stopped producing their classic models and is now focused on software, it said last month. This raised questions about the company's sustenance in the mobile market.
Business analysts have suggested that company to either sell or close down its unit.
BlackBerry's US-listed shares were little changed at $7.96 in afternoon trading.
(WION with inputs from Reuters)