BlackBerry Limited (NYSE: BB) shares plummeted almost 18% on Wednesday following the company’s announcement of a proposed private offering.
BlackBerry announced its plans to conduct a private offering of Convertible Senior Notes due in 2029, with a total value of $160 million after the close of the market on Tuesday. These notes will be exclusively available to qualified institutional investors.
BlackBerry plans to offer the initial purchasers the option to buy an additional $25 million worth of notes within a 13-day period.
BlackBerry expects to utilize the generated funds to facilitate the repayment or repurchase of its outstanding 1.75% extendible convertible unsecured debentures, totaling $150 million, set to mature next month.
Analysts View on BlackBerry Limited (NYSE: BB)
Wall Street analysts generally label the stock as Neutral based on the coverage history of the past three months. The most pessimistic outlook comes from RBC Capital’s Paul Treiber, who foresees an 11.11% decline in the stock in the coming year.
BlackBerry saw a 2.6% increase in the past three months, indicating a favorable shift in perceptions about its business attractiveness. This positive trend is evident not only in its stock price but also in underlying fundamentals, with a 3.55% rise in revenue over the past year.
BlackBerry Stock Performance
BB stock plunged -17.46% on Wednesday. The traders had exchanged hands with 53,428,790 (53.42 million) shares compared to the average daily trading volume of 5.47 million.
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
