King & Wood Mallesons (KWM) is pleased to have advised New Hope Corporation Limited (NHC) on its recent issuance of A$300 million senior convertible notes due 2029 (Notes), which are listed on the SGX-ST. Proceeds raised through issue of the Notes, which were issued on terms favourable to NHC, will allow NHC to access flexible, low coupon term debt, increasing balance sheet flexibility and supporting NHC’s strategy to maximise shareholder returns through disciplined operational management, cost control, production growth and capital management.
In connection with the issuance and pricing of the Notes, NHC entered into certain privately negotiated cash-settled call options with a number of global financial institutions. These capped call transactions are designed to reduce potential future dilution from conversion of the Notes, further enhancing returns for NHC shareholders.
This is the second issuance of SGX-ST-listed convertible notes that KWM has supported NHC on and follows KWM’s involvement in a number of similar convertible note transactions for other ASX-listed issuers.
The KWM team was led by Partners Paul Schroder, Max Allan and Phillip Harvey, and supported by Special Counsel Karim Issa, Senior Associate Rahul Mukherjee and Solicitors Sarah Jones, Jazz Osvald and Mark Teh.
Commenting on the deal, Paul Schroder said:
“We are delighted to have assisted New Hope return to a very active convertible market – this time with the novel capped call”.
