To Clear U.S. Debt, Ryman Raises NZ$902 Million, Which Slows Development in the Country

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Ryman Healthcare, one of New Zealand’s largest aged care providers, has raised NZ$902 million to help clear its U.S. debt and slow down its development pipeline in New Zealand.

In a statement last Wednesday, Ryman CEO Richard Umbers said, “We had decided to raise the money by issuing 180 million new shares at a discounted $5 each.”

Ryman Raises NZ$902 Million

Ryman Healthcare has been on an aggressive expansion strategy over the past seven years, investing $3.9 billion in new land and construction, with the peak of its investment hitting $670 million in 2021 against operating revenue cash flows of around $180 million a year.

The company has recently raised NZ$902 million by issuing 180 million new shares at a discounted $5 each to help clear its U.S. debt and slow down its development pipeline in New Zealand. With the rising debt, now at 45 per cent, reducing it to a more comfortable 34 per cent.

New Zealand’s Largest Aged Care Providers

Ryman Healthcare, one of New Zealand’s largest aged care providers, recently announced this to help pay off its USPP (U.S. Private Placement) debt.

As per Ryman’s disclosures, NZ$902 million of this new capital is being used to pay off about NZ$834 million worth of USPP debts taken out in the last two years – with around NZ$134 million representing the penalty cost for early repayment of these loans.

The move will help Ryman manage its debt levels more efficiently while giving it greater flexibility when managing future development costs. It will also enable them to focus their resources on expanding their services within New Zealand and continue providing high-quality care for senior citizens nationwide.

In conjunction with raising capital, Ryman has also put their development pipeline on hold until they have assessed its financial position and can manage its costs more effectively.

With this new arrangement in place, Ryman is now better placed than ever before to provide affordable and accessible aged care solutions throughout New Zealand while ensuring that they remain financially secure in the future.

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