InterDigital Inc (IDCC)

[texb]

Why does IDCC still have an 8.28% mortgage?

I was looking through the last 10-K to find what rate of return IDCC was getting on its sizeable cash horde (answer: average 2.47% - not bad) and I saw that $2 million was still outstanding on an 8.28% mortgage on the KOP building. The mortgage will not be paid off for another 9 years.

Questions...

(1) Wouldn't it seem reasonable to pay off the remaining $2 mil of that 8.28% mortgage with a small fraction of IDCC's $95 mil of cash that is earning 2.47%? (Net 5.81% annual interest savings is about $116,000.)

(2) Even if there are valid reasons for preserving every bit of cash (unlikely), shouldn't the mortgage have been refinanced over the last several years to reduce the interest rate?

Thoughts, anyone?

texb