Ryman Healthcare Equity Raise
Jarden acted as Joint Lead Manager and Underwriter for Ryman Healthcare's NZ$1.0 billion equity raise.
Expertise
Capital markets structuring and execution, facilitating large-scale equity raises, and ensuring strong investor participation in challenging market conditions.
Strategic Context
On 24 February 2025, Ryman Healthcare (NZX: RYM) announced a NZ$1.0 billion equity raise to reset its balance sheet, enhance financial stability, and create a solid platform for long-term growth and improved performance.
The transaction was structured as:
- NZ$313 million placement of new shares.
- NZ$688 million accelerated non-renounceable entitlement offer (ANREO) at a 1-for-3.05 ratio.
- The offer price was set at NZ$3.05 per share, representing a 21.9% discount to the theoretical ex-rights price (TERP).
The proceeds from the equity raise will be used exclusively to repay and cancel existing debt, with the exception of up to NZ$150 million of senior facilities that will remain available for future redrawing.
Execution
Jarden acted as Joint Lead Manager and Underwriter, ensuring the transaction was fully underwritten.
Key elements of the execution included:
- Pro-rata allocations across both the Placement and Entitlement Offer to ensure fairness and equal participation for all shareholders.
- Retail shareholder oversubscription facility of up to 75% of their entitlement mitigated the impact of Placement dilution.
- The Placement + ANREO structure was designed to secure the majority of the funds upfront, while ensuring retail shareholders had the opportunity to maintain their proportional holdings.
Despite challenging equity market conditions and a weaker company trading outlook, the raise was strongly supported by both existing and new investors, including existing institutional investors who actively participated in sub-underwriting.
Outcome
The equity raise successfully strengthened Ryman Healthcare's capital structure, providing resilience in the current market while maintaining flexibility for future business transformation and growth as market conditions recover.
The transaction achieved:
- A significant capital raise despite tough market conditions.
- Strong investor demand, particularly from institutional investors seeking long-term opportunities
- A balanced execution strategy, ensuring capital certainty while allowing for retail shareholder participation
This landmark transaction represents an additional step in Ryman Healthcare’s broader business reset, ensuring financial sustainability and a pathway for long-term shareholder value creation for New Zealand’s largest retirement village and aged care operator.
