How long will IDCC continue the stock buyback? Will IDCC redeem the notes on or after June 5, 2025? What will the stock price be on or after June 5, 2025? Stock price of $100.737 is 130% of the $77.49 conversion strike price. Is it reasonable to assume that IDCC has a specific number of shares targeted for buyback in anticipation of a redemption on or after June 5, 2025? Is reasonable to assume IDCC has some type of end point/game for the stock buyback? If so, what is it?
More questions than answers. Good luck to all longs...let the upward rise continue!
The notes will be InterDigital's senior unsecured obligations. The notes will pay interest semi-annually in cash on June 1 and December 1 at a rate of 3.50% per year, and will mature on June 1, 2027. The holders of the notes will have the ability to require InterDigital to repurchase all or any portion of their notes for cash in the event of a fundamental change. In such case, the repurchase price would be 100% of the principal amount of the notes being repurchased plus any accrued and unpaid interest.
Prior to March 1, 2027, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day preceding the maturity date. The notes will be convertible at an initial conversion rate of 12.9041 shares of InterDigital common stock per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of approximately $77.49, which represents a 27.5% conversion premium to the closing sale price of $60.78 per share of InterDigital common stock on the NASDAQ Global Select Market on May 24, 2022. In addition, following certain corporate transactions or an optional redemption of the notes, in each case, that occur prior to the maturity date, InterDigital will, in certain circumstances, increase the conversion rate for a holder that elects to convert its notes in connection with such a corporate transaction or optional redemption. Upon conversion, InterDigital will pay cash up to the aggregate principal amount of the notes to be converted, and will pay or deliver, as the case may be, cash, shares of InterDigital's common stock or a combination thereof, at InterDigital's election, for any conversion obligation in excess of the aggregate principal amount being converted.
InterDigital may redeem for cash all or any portion of the notes, at its option, on or after June 5, 2025 if the last reported sale price of InterDigital’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which InterDigital provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day preceding the date on which InterDigital provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes.
