BlackBerry to Sell $605 Million of Convertible Debt to Fairfax, Others by Reuters @FortuneMagazine August 26, 2016, 3:52 PM EDT E-mail Tweet Facebook Linkedin Share icons Troubled smartphone maker BlackBerry said it would raise about $605 million by selling convertible debentures to shareholder Fairfax Financial Holdings and other investors. The Canadian company will also redeem on Sept. 2 roughly $1.25 billion worth of outstanding debentures carrying a coupon of 6%, it said on Friday. The new debt that BlackBerry bbry plans to issue will have a coupon of 3.75% and will be due in November 2020. If all of the new debt is converted into stock, it will represent about 11.57% of BlackBerry’s outstanding shares, the company said. Get Data Sheet, Fortune’s technology newsletter. FairFax frfhf , led by well-known contrarian investor Prem Watsa, is BlackBerry’s second largest shareholder with a stake of about 8.9%, according to Reuters data. Once a dominant force in smartphones, BlackBerry now holds just a sliver of the global market. BlackBerry said last month it would stop making its Classic model, raising further doubts about the future of the company’s money-losing handset business as it shifts focus to software. In July, the company unveiled a second Android-based handset, which combines Alphabet’s goog popular software and broad app catalog with its security and productivity features at a lower price. President Obama’s New Smartphone Is More Like a Toddler Phone BlackBerry Chief Executive John Chen has expressed confidence that the company’s trimmed-down handset business can meet its September target to turn profitable. Analysts, however, have urged the company to sell or shut down the unit. BlackBerry’s U.S.-listed shares were little changed at $7.96 in afternoon trading.