Ryman Healthcare in trading halt ahead of capital raising

Jarden Securities Limited, Craigs Investment Partners and Forsyth Barr will together place $313 million of shares with institutional investors at an offer price of $3.05 a share. Photo: RNZ / Nate McKinnon

Retirement Village operator Ryman Healthcare is in a trading halt as it proposes to raise $1 billion of new capital to reduce debt and reset the balance sheet.

Jarden Securities Limited, Craigs Investment Partners and Forsyth Barr will together place $313 million of shares with institutional investors at an offer price of $3.05 a share.

The balance of about $688m will be offered by way of a fully underwritten entitlement offer of new shares to shareholders.

Ryman chair Dean Hamilton said the equity raise would reset the balance sheet, to a debt gearing of 23.1 percent from 37.3 percent.

"We are on a journey and have already made significant transformation progress over the past 12 months, including our board, management and governance refresh, changes to our pricing model and moving to a functional structure. Resetting our balance sheet will support us to progress our business improvement programme further."

Ryman chief executive Naomi James, who joined Ryman in November 2024, said the business improvement programme was focused on releasing cash from the business of more than $500m over the next three to five years, targeting $100m-to-$150m in annualised cash improvement through revenue and cost opportunities and taking a disciplined approach to growth.

"We are transforming how we operate so that our residents continue to have the best experience in retirement living, with access to industry leading care," she said.

The trading halt would be lifted at the completion of the institutional offer or by the opening of trade Wednesday, 26 February.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.