BlackBerry Ltd (NYSE:BB) shares are trading lower Wednesday after the company announced a proposed private offering.

What Happened: After the market close on Tuesday, BlackBerry said it intends to offer $160 million worth of Convertible Senior Notes due 2029 in a private offering. The notes will be offered only to qualified institutional investors.

BlackBerry expects to grant the initial purchases the option to purchase up to an additional $25 million of the notes over a 13-day period.

BlackBerry said it expects to use the proceeds to fund the repayment or repurchase of its outstanding $150 million worth of 1.75% extendible convertible unsecured debentures due next month. Any remaining proceeds will be used for general corporate purposes.

BlackBerry was previously known for being the world's largest smartphone manufacturer, but now the company leverages AI and machine learning to provide solutions for cybersecurity, safety and data privacy. BlackBerry provides intelligent security software and services to enterprises and governments around the world.

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BB Price Action: BlackBerry shares were down 10.1% at $3.17 at the time of publication, according to Benzinga Pro.

Photo: courtesy of BlackBerry.