Hope talks $200 million 20-year convertible notes to yield 1.75% to 2.25%, up 22.5% to 27.5%

By Abigail W. Adams

Portland, Me., May 7 – Hope Bancorp Inc. plans to price $200 million of 20-year convertible notes after the market close on Tuesday with price talk for a coupon of 1.75% to 2.25% and an initial conversion premium of 22.5% to 27.5%.

BofA Merrill Lynch is the sole bookrunner for the Rule 144A deal, which carries a greenshoe of $30 million.

The notes are freely callable after May 20, 2023 and there are put options on May 15, 2023, May 15, 2028 and May 15, 2033, according to a company news release.

In connection with the offering, Hope Bancorp will repurchase up to $100 million of common stock.

Proceeds will be used to fund the share buyback with the remaining amount to be used by the Bank of Hope for general corporate purposes.

Hope Bancorp is the Los Angeles-based holding company of the Bank of Hope, the only regional Korean-American bank in the United States, which specializes in business banking products for small and mid-size companies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.