Replies to post #432100 on InterDigital Inc (IDCC)

[jealmc79]

The simplest way to understand it is the bond conversions are conversion price (which goes to cash on conversion) + hedge ( whatever the stock price is on the day of conversion minus conversion price ) . Then you get $109.43 times the number of warrants exercised. That is how you get about $110 per share.

Huh? That's about as clear as mud.

The easiest way to understand it is, once IDCC pays back the $126,174,000, plus whatever interest is owed on the 2024 notes, the hedge and the warrants will cancel each other out unless the stock price is over $109.43. If the stock price is over $109.43 then IDCC will have to issue shares to the warrant holder in accordance with the table on page 29 of the latest 10q, or maybe a cash equivalent, hence the extra dilution. That's why it makes no sense for IDCC to be buying shares at a price higher than $109.43 at this time.

[badgerkid]

Vegas, isn't the company through it's share repurchase now fully hedged against the warrants? It appears that there are more than enough shares in treasury to satisfy all warrants.

https://www.warrants.com.sg/eduhtml.howdomarketmakershedge

My personal view of the recent exchange on this board:

https://www.google.com/search?q=check+me+if+i%27m+wrong+sandy&rlz=1C1CHBF_enUS838US839&oq=check+me+if+i&gs_lcrp=EgZjaHJvbWUqBwgAEAAYgAQyBwgAEAAYgAQyBggBEEUYOTIICAIQABgWGB4yCAgDEAAYFhgeMg0IBBAAGIYDGIAEGIoFqAIAsAIA&sourceid=chrome&ie=UTF-8#fpstate=ive&vld=cid:7523d45b,vid:g79mLV9b30c,st:0