New Hope Corporation has successfully priced A$300 million in new convertible notes maturing in 2032 while simultaneously repurchasing A$293.3 million of its existing 2029 convertible notes. This refinancing transaction demonstrates the company’s ability to access capital markets on competitive terms and effectively extends its debt maturity profile by approximately three years.
The new convertible notes carry a coupon of 2.625 percent and feature an initial conversion price of A$7.41 per ordinary share, representing a 37.5 percent conversion premium above the April 15 closing share price. This pricing reflects market confidence in New Hope’s prospects and positions equity conversion at levels notably above current trading levels, reducing near-term dilution risk for existing shareholders while providing noteholders with meaningful upside participation should the share price appreciate over the six-year holding period.
The concurrent repurchase of the existing 2029 notes represents a proactive approach to debt management. New Hope negotiated an average repurchase price of A$113,700 per A$100,000 principal amount of the older notes, totaling A$333.5 million in repurchase consideration. While this represents a premium to par value, the transaction achieves several strategic objectives. The company addresses refinancing risk by eliminating the 2029 maturity wall and extends debt maturities, thereby improving financial flexibility. Additionally, the lower coupon on the new notes (2.625 percent versus 3.125 percent on the 2029 notes) should generate modest interest savings going forward.
After the repurchase, approximately A$6.7 million in aggregate principal amount of the 2029 notes remains outstanding. New Hope has indicated its intention to redeem these remaining notes at par prior to their July 2027 put option date, which would fully eliminate this liability. Settlement of both the new offering and concurrent repurchase is expected on April 22, 2026, subject to customary conditions precedent.
The financing is noteworthy for how it balances multiple objectives. The net proceeds from the new offering, approximately A$294.2 million after transaction costs, fully fund the repurchase, requiring only modest utilization of existing cash reserves. This capital-efficient structure minimizes balance sheet disruption while achieving the refinancing goal. For investors, the transaction illustrates management’s commitment to maintaining prudent capital structures and managing near-term liability maturities.
Jefferies served as sole global coordinator with Jefferies and Jarden Australia acting as joint lead managers. The successful completion suggests strong investor appetite for New Hope’s credit profile. Shareholders and noteholders should monitor whether New Hope executes the intended redemption of remaining 2029 notes as flagged and track how the company deploys its balance sheet flexibility going forward. This announcement is price sensitive and has been classified as material by the ASX.
View the full ASX announcement (PDF)
About New Hope Corporation Limited (ASX: NHC)
New Hope Corporation is an Australian thermal coal miner operating the 100% owned New Acland coal mine in Queensland and the 80% owned Bengalla coal mine in New South Wales. The company sells the majority of its thermal coal production to seaborne export markets throughout Asia, and also engages in port handling, logistics, oil and gas development and production, and agricultural operations.
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