InterDigital Inc (IDCC)

[jealmc79]

what will this transaction look like at 125?

2027 Notes, assuming, the Call Strike at $77.51 and the Warrant Strike at $106.35, $460 millions in notes to pay off.

Exercising and paying off everything at $125:

IDCC will pay $460 million in cash to pay the principal on the notes.
If the Calls/Warrants are converted to cash, IDCC will be owed a net (Call Value - Warrant Value) of $171,157,270.
If the Calls/Warrants are converted to shares, IDCC will be owed a net (Call Shares - Warrant Shares) of 1369258 shares.
Notice that IDCC is getting the money or the shares, not some Goldman Sachs customer.

IDCC's approximate costs for the whole 2027 transaction so far:
$10 million loan fee
$36.8 million for Call Spread cost
$32.2 million in interest(2 years)

I have this all automatically calculated on a Call Spread spreadsheet and can give you the numbers for any exercise price.