InterDigital to price $150 million five-year convertibles to yield 2.5%-3%, up 27.5%-32.5%

By Rebecca Melvin

New York, March 28 - InterDigital Inc. plans to price a $150 million offering of five-year convertible senior notes after the market close Tuesday that was talked to yield 2.5% to 3% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

The Rule 144A offering has a 15% greenshoe for up to an additional $22.5 million of notes.

Barclays Capital Inc. is the bookrunner.

The notes have contingent conversion at a price trigger of 130%.

In connection with the offering, InterDigital plans to enter into convertible note hedge and warrant transactions with affiliates of the initial purchaser.

A portion of the proceeds and the proceeds from the warrants sale will be used to fund the call spread. Remaining proceeds will be used for general corporate purposes, including acquisitions of intellectual property-related assets or businesses or securities in such businesses, for capital expenditures for and working capital.

King of Prussia, Pa.-based InterDigital develops digital wireless technologies for use in cellular and wireless related products. It also develops solutions for enhancing bandwidth availability and network capacity, wireless security and seamless connectivity, and mobility across networks and devices.

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