Hope Bancorp greenshoe ups 2% 20-year convertibles to $217.5 million

By Susanna Moon

Chicago, June 8 – Hope Bancorp Inc. sold another $17.5 million of its 2% 20-year convertible notes in a partial exercise of the over-allotment option by underwriters, according to an 8-K filing with the Securities and Exchange Commission.

This brings the total deal size to $217.5 million, up from $200 million at pricing on May 8.

As reported, Hope priced the convertibles with an initial conversion premium of 22.5% and a coupon in the middle of talk for a coupon of 1.75% to 2.25%. The conversion premium had been talked at 22.5% to 27.5%.

BofA Merrill Lynch is the bookrunner for the Rule 144A deal, which carried 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.

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-sized companies.

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