Ryman Launches NZ$100 Million Bonds Maturing 2032 at Minimum 5.60% Interest

New Bond Offer Targets NZ$100 Million with Oversubscription Option

Ryman Healthcare (NZX:RYM) has launched a fixed rate bond offer aiming to raise up to NZ$100 million, with the ability to accept an additional NZ$50 million in oversubscriptions at its discretion. The bonds will mature on 22 June 2032, marking a six-year tenor, and will be quoted on the NZX Debt Market under the ticker RYM020. The offer opens on 8 June and closes on 11 June 2026, with issuance expected on 22 June.

Interest Rate Set by Bookbuild with Minimum 5.60% Yield

The indicative issue margin range is between 1.80% and 1.90% per annum over the swap rate, but the final margin; and thus the interest rate; will be determined after a bookbuild process on 11 June. Importantly, the bonds carry a minimum interest rate of 5.60% per annum, ensuring a baseline yield for investors amid current market conditions. Interest payments will be made quarterly in arrears, starting 22 September 2026.

Exchange Mechanism Offers Existing Bondholders a One-for-One Swap

Ryman is offering holders of its existing RYM010 bonds; currently quoted on the NZX Debt Market; the option to exchange their bonds for the new RYM020 bonds on a one-for-one face value basis. This Exchange Mechanism is only available to custodial account holders who receive an allocation of the new bonds via the bookbuild and agree to the exchange terms. The process is scheduled to open on 11 June and close on 17 June 2026.

Exchanged RYM010 bonds will be purchased by Ryman on the issue date and subsequently cancelled, reducing the outstanding amount of the existing bonds and potentially affecting their secondary market liquidity. To facilitate this process, trading in RYM010 bonds will be suspended from pre-market on 12 June until pre-market on 23 June 2026.

Secured Bonds Backed by Extensive Property and Corporate Guarantees

The new bonds are secured, unsubordinated obligations ranking equally with Ryman’s other unsubordinated debt. Security includes first ranking registered mortgages over land and buildings owned by Ryman’s New Zealand guarantors, general security agreements, and other collateral arrangements spanning New Zealand and Australia. The security package mirrors that of Ryman’s existing bank facilities, providing bondholders with a robust claim on assets.

Use of Proceeds and Financial Covenants

Proceeds from the bond offer, excluding any value from exchanged RYM010 bonds, will be used to repay a portion of Ryman’s existing bank debt, refinance the maturing RYM010 bonds, and support general corporate purposes. Ryman must maintain financial covenants including a debt to equity ratio no greater than 1:1 and guaranteeing group coverage of at least 90% of total group assets and EBITDA. Breaches of these covenants carry defined remediation periods and potential default implications.

Capital Raising Fits Within Ryman’s Broader Financial Strategy

This bond offer aligns with Ryman’s ongoing capital management initiatives, including its recent NZD 2 billion refinancing of bank facilities and efforts to improve cash flow and balance sheet resilience. The company has previously signalled a focus on sustainable cash flow growth and portfolio optimisation, aiming to support dividend resumption in future years. The new bond issuance adds tenor diversity and funding flexibility to Ryman’s capital structure.