Got it all figured out by myself. Now if I knew how to post spreadsheet data to here I could show everybody. Basically, IDCC needs the stock price above $99.92(break even price) to come out ahead dollar wise on the Call Spread transaction. Max cash profit possible is $14,766,407 with stock price on date of conversion at or above $109.43. Max loss is approximately $28,920,000(cost of loan plus interest) if stock is below $81.29.
If they covert the call spread to shares the max number of shares IDCC would receive is 399,218 shares with the stock price closing at $109.43. The number of shares they would receive goes down on either side of that closing price. Effectively, the best they would be doing is coming out paying $72.44/share at that conversion closing stock price once you consider their costs involved in this total transaction. The cost per share would go up considerably on either side of that closing price.
So, even though they can make a max profit of $14,766,407 by taking the cash, the best they can do by converting the shares is $72.44. The bad thing is, they could have bought the shares on June 3, 2019(when Call Spread was initiated)for $64.58.
This all assumes they are paying back the principal in cash as stated in the 10q.
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