Shares in New Hope are falling today. Here’s why.
The post The New Hope (ASX:NHC) share price is down 7% today appeared first on The Motley Fool Australia. –
Shares in New Hope Corporation Limited (ASX: NHC) are falling today after news broke of the company’s convertible notes offering. At the time of writing, the New Hope share price is $1.71 – 6.79% less than its previous closing price.
Let’s take a closer look at today’s news from the coal, oil, agriculture, technology, and investment company.
Convertible notes offering
According to New Hope, the company’s convertible notes offering will see it pocket around $196 million after fees.
The notes’ initial conversation price will be $2.10 per share – a 25% premium on the reference share price of $1.68.
They will have a set coupon rate of 2.75% which will be paid twice yearly until the notes mature.
They will mature on 2 July 2026 unless they are redeemed, converted, or repurchased.
New Hope share price snapshot
Luckily for the New Hope share price, today’s drop hasn’t weighed too heavily on its gains this year.
Currently, the New Hope share price is 18% higher than it was at the beginning of 2021. It has also gained 25% since this time last year.
The company has a market capitalisation of around $1.5 billion, with approximately 832 million shares outstanding.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.