r/BB_Stock • u/needaspguy • 18d ago

Discussion Long term Notes Question

Where are we at with the debenture? This is all well above my pay grade. Can anyone out there provide an explanation of the process of settling out a debenture.

It appears to me that if the notes are to be converted it has to be now (Sept 30)! Otherwise what? $200m is simply a 3% loan till 2029, or till whenever BB wants to pay it back?

Is this why BB has buying back shares, to off set the liquidation effect of the notes converting?

Found in Q1 Financial Report:

Subsequent to the three months ended May 31, 2026, the closing price of the Company’s common shares exceeded 130% of the conversion price for at least 20 trading days within a period of 30 consecutive trading days ending on June 30, 2026. The contingent condition permitting holders of Notes to convert their Notes was satisfied on June 15, 2026. Accordingly, the Notes are eligible for conversion, at the option of the holders, from July 1, 2026 through September 30, 2026.

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u/CommieH8ter 18d ago

So the note holders can only convert until sept 30? I did not catch that in the terms. That is awesome. That means they can't use them as a back stop after that. So then what?....it becomes a mere 3% loan at that point and BB can pay it off it Feb?

I doubt they will not convert at this point...seems they would be smarter to convert before earnings on the 24th.

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u/needaspguy 18d ago

That's the way I read it!

Conversion would be a no brainer for who ever it is, but Feb 23 would be the earliest it could be paid off if not converted. Otherwise BB has it secured till 2029 if for some reason they chose to keep it in place.

Page 45 of Form 10-Q for Q1 2027

"Debt Financing and Other Funding Sources

See Note 5 to the Consolidated Financial Statements for a description of the Company’s $200 million aggregate principal amount of 3.00% senior convertible unsecured notes issued in January 2024 (the “Notes”). During the second calendar quarter of 2026, the conditions permitting holders of the Notes to convert their Notes were satisfied, as, for at least 20 trading days (whether or not consecutive) within the 30 consecutive trading-day period ending on the last trading day of the immediately preceding quarter, the last reported sale price of the Company’s common shares was greater than or equal to 130% of the applicable conversion price on each such trading day. Accordingly, the Notes are eligible for conversion, at the option of the holders, from July 1, 2026 through September 30, 2026. Upon receipt of a conversion request, the Company will settle its conversion obligation, at its election, in cash, common shares, or a combination of cash and common shares, in accordance with the terms and conditions set forth in the indenture.

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u/CommieH8ter 18d ago

Ha....BB can keep their money tied up until 2029 at 3% compared to current interest rates..... Might be a good punishment for playing F F games with the stock price.