- New Hope Corporation’s (NHC) shares price has dropped after pricing $200 million worth of senior unsecured convertible notes
- The notes are due to convert in July 2026, and each note has an initial conversion price of $2.10 — a 25 per cent premium on the reference share price
- NHC expects to walk away with $196 million in net proceeds from the notes, and will use the cash for general capital and to consider acquisitions
- The notes should settle by July 2, and the diversified energy business says it will lodge an offering circular in connection to the notes on the Singapore Exchange
- Shares in New Hope Corporation have plummeted and are trading down 8.15 per cent at $1.69 per share
New Hope Corporation’s (NHC) shares price has dropped after it announced it had priced $200 million worth of senior unsecured convertible notes
In an announcement on Friday, the diversified energy business explained the notes in question are due to convert on July 2, 2026.
Each note had an initial conversion price of $2.10 — which the company said is a 25 per cent premium on the reference share price.
NHC expects to walk away with $196 million in net proceeds from the notes once they’re redeemed, purchased or converted.
The company said it will use the cash generated from the notes for general capital or to consider further acquisitions.
“We are very pleased with the demand experienced for the convertible notes offering,” CEO Reinhold Schmidt said.
“This transaction has enabled a new group of global institutional investors to invest in New Hope and provides diversified capital for us to expand as we continue to deliver on our core business of providing low cost, reliable and efficient energy to growing nations.
“The convertible notes offering enhances New Hope’s ability to pursue growth and acquisition opportunities that may be available in the market, providing value to our investors.”
A delta placement of approximately 38.1 million NHC shares was executed in order to facilitate some of the hedging activity in relation to the notes offering.
The company will also lodge an offering circular in connection with the notes on the Singapore Exchange Securities Trading Limited (SGX-ST).
Shares in NHC have plummeted 8.15 per cent following today’s announcement trading at $1.69 per share at 11:16 am AEST.