InterDigital to buy back portion of its 1.5% convertibles due 2020

By Rebecca Melvin

New York, May 29 – InterDigital Inc. plans to repurchase a portion of its 1.5% senior convertible notes due 2020 with proceeds of a new $350 million convertible note, according to a company news release.

The notes will be repurchased in privately negotiated transactions, and the company expects to enter into agreements with dealer parties to certain convertible note hedge transactions to unwind note hedges associated with the 2020 notes. InterDigital sold $275 million of the 1.5% notes in March 2015.

InterDigital is also repurchasing up to $50 million shares of common stock, and it is entering into new convertible note hedge and warrant transactions.

The new five-year notes were being talked at a coupon of 1.75% to 2.25% and an initial conversion premium of 27.5% to 32.5%, and the transaction was expected to price after the market close on Wednesday.

Barclays and Credit Suisse Securities (USA) LLC are the bookrunners for the new Rule 144A offering, which carries a greenshoe of $50 million.

The mobile technology research and development company is based in Wilmington, Del.

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