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Hope Bancorp closes senior notes offering

Hope Bancorp Inc. closed the sale of its previously announced offering of 2.00% convertible senior notes due 2038.

The initial purchaser, exercised in part, its previously announced over-allotment option to buy an additional $17.5 million notes. The additional notes were sold on the same terms and conditions as the original notes. Hope Bancorp, including the issuance of additional notes, has issued a total of $217.5 million aggregate principal amount of the notes.

Hope Bancorp received net proceeds of about $213.15 million from the offerings, after deducting the initial purchaser's discount, but before estimated offering expenses payable by Hope Bancorp.

As announced previously, Hope Bancorp's board approved a share repurchase program that authorized the company to use up to $100 million of the proceeds from the offering of notes in order to buy back up to $100 million common shares. As a result, Hope Bancorp repurchased about $76 million of its common stock from purchasers of the notes in privately negotiated transactions effected through the initial purchaser, or through its affiliates, which conducted concurrently with the pricing of the notes at a purchase price of $18.11 per share, equal to the per share closing price of the Hope Bancorp's common stock on May 8.

Hope Bancorp anticipates to use the remaining capacity for buybacks of about $24 million to fund open market or privately negotiated repurchases. Moreover, Hope Bancorp plans to contribute the remaining proceeds from the offerings as additional capital to its unit Bank of Hope. Bank of Hope will use the additional capital for general corporate purposes.