The New Zealand-based provider, which has been rapidly increasing its property portfolio in Victoria, is asking its shareholders to find up to $NZ902 million to help repay what CEO Richard Umbers says is ‘uncomfortable’ debt.
Ryman announced a 1 for 2.81 entitlement offer to the New Zealand Stock Exchange on Wednesday morning, inviting eligible shareholders in New Zealand and Australia to subscribe for new shares at a 22% discount of $NZ5 a share.
“Resetting the capital structure with new equity through this Offer will allow Ryman to pay down debt by fully repaying Ryman’s USPP notes and reduce pro-forma gearing from 45.3% to 33.9%.” the company states.
It is the biggest equity raise in the region so far this year.
“Our significant recent investment in our portfolio underpins our potential for future growth but has resulted in higher debt than we are comfortable with in current market conditions,” Umbers, who was appointed last September, said in the announcement.
"With a recapitalised balance sheet, a refreshed leadership team and a newly focused approach to development, we believe we are well placed to take advantage of the opportunities in our business.”
Ryman has 45 retirement villages in NZ and Australia caring for about 13,000 residents, with 15 villages under construction. It has been borrowing to acquire sites for future villages and fund its expansion in Australia.
It has six operational villages in Victoria and six sites in various stages of planning, design and construction.
Ryman’s pipeline was set to deliver 1000 new retirement village units and care beds in this financial year, reducing to a maximum 800 new units and beds the following year, before ramping up to about 900 in the 2025 financial year.
