InterDigital announces convertibility of 3.50% senior convertible notes

InterDigital announced that, pursuant to the terms of the Indenture governing its 3.50% Senior Convertible Notes due 2027, the Notes are convertible during its calendar quarter ending June 30, 2024. The current conversion rate of the Notes is 12.9041 shares of InterDigital’s Common Stock per $1,000 principal amount of the Notes. Upon the conversion of any Notes, InterDigital will pay cash up to the aggregate principal amount of the Notes to be converted, and will pay cash, shares of its Common Stock or a combination of cash and shares of its Common Stock for any conversion obligation in excess of the aggregate principal amount being converted, if any, at InterDigital’s election, as set forth in the Indenture governing the Notes. At the time InterDigital issued the Notes, InterDigital entered into call spread transactions that together were designed to have the economic effect of reducing the net number of shares that will be issued in the event of conversion of the Notes by, in effect, increasing the conversion price of the Notes from InterDigital’s economic standpoint from $77.49 to $106.35. Refer to Footnote 10 of the Financial Statements from InterDigital’s Form 10-K for the year ended December 31, 2023 for more information.