The New Hope Corporation Ltd (ASX: NHC) share price is in focus today after the company announced a $300 million senior unsecured convertible notes offering due 2032 and a planned repurchase of up to 100% of its existing 2029 convertible notes. The new convertible notes carry a coupon of 2.375%–2.875% and give investors a put option in 2030.
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What did New Hope report?
- Launch of $300 million senior unsecured convertible notes due 2032 ("New Notes")
- Concurrent repurchase of up to 100% of existing $300 million convertible notes due 2029
- Coupon rate for New Notes set at 2.375%–2.875% per annum, payable semi-annually
- Notes may be converted into ordinary shares or settled in cash at New Hope's election
- New Notes to be listed on the Singapore Exchange (SGX-ST)
- Use of proceeds: refinancing, capital management, and general corporate purposes
What else do investors need to know?
The Offering will fund the repurchase of all or part of the 2029 notes, allowing New Hope to refinance at more attractive terms and extend its debt maturity profile. Any balance not used for the repurchase will go towards general corporate purposes, supporting the company's ongoing strategy.
A book-build for the new issue will finalise terms before market open. Jefferies (Australia) is acting as sole global coordinator, with Jefferies and Jarden Australia as joint lead managers. If more than 85% of the 2029 notes are repurchased and cancelled, New Hope may redeem the remainder at face value plus accrued interest.
Recent volatility in global energy markets, driven by tensions in the Middle East, has kept thermal coal prices elevated. New Hope reports production and costs are tracking within its FY26 guidance range.
What did New Hope management say?
Chief Financial Officer Rebecca Rinaldi said:
We are pleased to return to the convertible bond market for the third time. The convertible bond market continues to be an important and cost-effective component of our capital structure. Through this transaction, we are proactively refinancing our 2029 notes at improved terms, extending our debt maturity profile and reducing our financing costs. Consistent with our prior issuance, New Hope may cash settle any conversions, providing us with flexibility to manage any future dilution that may arise.
What's next for New Hope?
Looking ahead, New Hope aims to strengthen its balance sheet and maintain financial flexibility through this refinancing. By extending its debt maturity and reducing financing costs, the company positions itself to support growth initiatives and deliver value for shareholders in a volatile energy market.
Management will keep investors updated as final pricing and allocations for the New Notes are confirmed and the repurchase process unfolds. The company remains focused on disciplined capital management in alignment with its established strategy.
New Hope share price snapshot
Over the past 12 months, New Hope shares have risen 51%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.
