Capital Raise – Ryman moves to strengthen balance sheet

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 15 February 2023 NZX announcement Ryman moves to strengthen balance sheet Ryman Healthcare Limited (Ryman) is raising $902 million through a 1 for 2.81 accelerated pro rata entitlement offer of new ordinary shares (New Shares), with trading of retail entitlements on the NZX (the Offer). The purpose of the Offer is to reset Ryman's capital structure, provide funds to strengthen its balance sheet through the repayment of debt and better enable the company to execute its growth framework. With a history dating back almost 40 years, Ryman has a strong presence in New Zealand and is the largest retirement village operator. In addition, Ryman now has a growing presence in Victoria, Australia. Across both markets Ryman provides homes for more than 13,000 residents across 45 high quality villages in high value suburbs. Since the start of FY18, Ryman has invested over $3.9 billion in its portfolio, delivering more than 2,699 independent living units and 1,018 new care beds for residents. During this period Ryman also invested in new sites for its landbank, which provides a platform for growth. Ryman currently has 15 villages under construction and 6,710 units in its current land bank. This period of accelerated investment, where investing cash flows exceeded operating cash flows, has resulted in elevated levels of debt. 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% . In addition, the Board has determined that no further dividend will be paid for FY23F. CEO Richard Umbers said, "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. The steps announced today will mean we are well capitalised as we seek to meet increased demand for the Ryman way of life, while also increasing cash flow generation and shareholder returns." "Ryman is now an established trans-Tasman business, with a compelling retirement village living and aged-care proposition in both markets. 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 and continue to deliver care that is 'Good Enough for Mum or Dad'." Details of the Offer Under the Offer, eligible shareholders are being invited to subscribe for New Shares, at a discount to the closing share price before the Offer. Eligible holders of entitlements to subscribe for New Shares can choose to take up their entitlements in whole or in part or not at all. Importantly, the Board has structured the Offer with a view to maximising fairness for its shareholders, including through providing for eligible retail shareholders with the ability to apply for additional New Shares if they take up their entitlements in full, and also to sell their entitlements on the NZX Main Board. The Offer is open to eligible shareholders in New Zealand, Australia and a limited number of other jurisdictions. Information about the Offer, including on the eligibility criteria and how to participate, is set out in the Offer Document. About Ryman: Ryman Healthcare was founded in Christchurch in 1984 and owns and operates 45 retirement villages in New Zealand and Australia. Ryman villages are home to approximately 13,700 residents, and the company employs 6,800 staff. Contact: Investor queries: Hayden Strickett, Head of Investor Relations, +64 27 303 1132 or hayden.strickett@rymanhealthcare.com Media queries: Marsha Cadman, Chief Sales and Marketing Officer +61 414 790 480 or marsha.cadman@rymanhealthcare.com End CA:00406679 For:RYM Type:OFFER Time:2023-02-15 08:30:44