Highlights

  • Ryman Healthcare has launched an offer of up to NZ$100 million of six-year fixed rate, secured and unsubordinated bonds.
  • The company may accept up to an additional NZ$50 million in oversubscriptions at its discretion.
  • The bonds are expected to mature on 22 June 2032 and carry a minimum Interest Rate of 5.60% per annum.
  • The indicative issue Margin range has been set at 1.80% to 1.90% per annum over the swap rate.
  • The offer opened on 8 June 2026 and is expected to close at 11:00am NZT on 11 June 2026.

Ryman Healthcare Limited (ASX:RYM) (NZX:RYM) has launched a new fixed rate retail bond offer, seeking to raise up to NZ$100 million with the ability to accept up to a further NZ$50 million in oversubscriptions at the company’s discretion. The offer is for six-year fixed rate, secured, unsubordinated bonds that are expected to mature on 22 June 2032.

Ryman shares were trading at AUD 1.86 during the afternoon session on 9 June 2026, up 0.81% for the day. Despite the modest daily movement, the stock remained down 18.42% over the past year.

Company Overview

Ryman Healthcare was founded in Christchurch in 1984 and is New Zealand’s largest retirement living and aged care provider. The company is also a major integrated retirement living and aged care operator in Victoria, Australia.

Ryman is dual listed on the NZX and ASX and owns and operates 47 integrated retirement villages across New Zealand and Australia. The company provides homes to more than 15,500 residents and employs around 7,800 team members.

Its villages are designed around an integrated care model that includes independent living, assisted living and aged care services within a single community. This structure allows residents to access different levels of care as their needs change over time.

Offer Seeks Up to NZ$150 Million Including Oversubscriptions

The bond offer includes an initial issue size of up to NZ$100 million. Ryman also has the discretion to accept oversubscriptions of up to NZ$50 million, which could increase the total offer size to NZ$150 million.

The bonds are being offered to institutional investors and New Zealand retail investors. According to the terms sheet, there will be no public pool, with bonds reserved for clients of the joint lead managers, primary Market Participants, institutional investors and other parties invited to participate in the bookbuild.

The issue price is NZ$1.00 per bond. The minimum application amount is NZ$5,000, with additional investments required in multiples of NZ$1,000.

The offer opened on Monday, 8 June 2026 and is expected to close at 11:00am NZT on Thursday, 11 June 2026. The bonds are expected to be issued on 22 June 2026, with Quotation on the NZX Debt Market expected on 23 June 2026.

Minimum Interest Rate Set at 5.60%

Ryman has set a minimum interest rate of 5.60% per annum for the bonds.

The final interest rate will be determined by adding the swap rate to the issue margin. The indicative issue margin range has been set at 1.80% to 1.90% per annum over the swap rate.

However, the company noted that the final issue margin may be within, above or below the indicative range. The final issue margin and interest rate are expected to be set on 11 June 2026 following the bookbuild process and announced through the NZX shortly after.

Interest will be paid quarterly in arrears on 22 March, 22 June, 22 September and 22 December each year, or on the next Business day if the scheduled date is not a business day. The first interest payment date is expected to be 22 September 2026.

Proceeds to Support Funding Diversity and Debt Management

Ryman stated that the purpose of the offer is to provide further diversity of funding sources and tenor.

The company intends to use the net proceeds from the offer, excluding the value of any RYM010 bonds exchanged under the exchange mechanism, to repay a portion of existing bank debt, support refinancing of RYM010 bonds and for general corporate purposes.

The new bonds are secured and unsubordinated obligations of Ryman. They will rank equally with the company’s other unsubordinated obligations, except for indebtedness preferred by law.

The bonds will also share in the benefit of the same security package as Ryman’s banks and other debt funding providers who are beneficiaries under the relevant security arrangements.

Exchange Mechanism Available for Certain Existing Bondholders

Ryman has also outlined a potential exchange mechanism for certain holders of its existing quoted bonds under ticker code RYM010.

If the offer proceeds and the bookbuild is successful, eligible custodial RYM010 bondholders may be able to exchange some or all of their existing RYM010 bonds for an equal number of new bonds on the Issue Date.

The exchange would be conducted on a one-for-one basis at a Face Value of NZ$1.00.

Participation in the exchange mechanism is subject to certain conditions. The holder must receive an allocation of new bonds through a participant in the bookbuild, and Ryman and the relevant participant must agree to the exchange.

The company clarified that eligible RYM010 bondholders are not required to participate in the exchange mechanism and may choose to continue holding their existing bonds. The mechanism also does not prevent them from seeking to invest in more or fewer new bonds than the number of RYM010 bonds they currently hold.

Any RYM010 bonds purchased by Ryman under the exchange mechanism will be cancelled. This will reduce the total amount of RYM010 bonds outstanding, which the company said may affect trading of those bonds on the secondary NZX Debt Market.

Trading Suspension Planned for Existing RYM010 Bonds

To allow for an orderly settlement and Redemption process, trading in RYM010 bonds is expected to be suspended from pre-market trading on 12 June 2026 until pre-market trading on 23 June 2026.

The suspension period begins after the expected rate set date and ends on the expected initial quotation date for the new bonds.

According to the terms sheet, the current average Market Price of RYM010 bonds over the 20-working-day period ending 4 June 2026 was NZ$0.9918 per RYM010 bond.

Ryman advised investors to read the full terms of the exchange mechanism carefully and understand the value of their existing bonds before making any decision.

New Bonds Expected to Trade Under RYM020

Ryman has applied for the new bonds to be quoted on the NZX Debt Market.

The reserved ticker code for the bonds is RYM020, while the ISIN is NZRYMD0020L1.

The company noted that NZX has not yet approved the bonds for trading and accepts no responsibility for any statement in the terms sheet.

The offer is being made under New Zealand’s Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as Ryman’s existing RYM010 bonds. Except for the interest rate and Maturity date, the new bonds will have identical rights, privileges, limitations and conditions as the existing RYM010 bonds.

Security and Financial Covenant Framework

The bonds will be secured under the company’s trust and security arrangements.

The security package includes certain registered mortgages over land and buildings held by New Zealand guarantors, general security agreements and related security arrangements across relevant group entities.

The company also outlined financial covenants applicable under the master trust deed. These include a debt-to-Equity covenant requiring the ratio of adjusted total liabilities to net tangible assets to be no greater than 1.0:1.0.

Another covenant requires the total tangible assets and adjusted EBITDA of the guaranteeing group to represent not less than 90% of the total tangible assets and adjusted EBITDA of the Ryman group for the last twelve months.

Ryman stated that neither the company nor the bonds are or will be rated.

Offer Managed by Major Financial Institutions

ANZ Bank New Zealand Limited is acting as arranger and joint lead manager for the offer.

Craigs Investment Partners Limited, Forsyth Barr Limited and Westpac Banking Corporation, acting through its New Zealand branch, are also serving as joint lead managers.

Public Trust is the bond supervisor, while New Zealand Permanent Trustees Limited is the security Trustee. MUFG Pension & Market Services (NZ) Limited is acting as registrar.

What This Means for Investors

Ryman’s latest update is focused on debt funding and Capital management rather than operational performance.

The proposed bond issue provides the company with an opportunity to diversify its funding sources, extend debt tenor and manage existing debt obligations, including refinancing related to its RYM010 bonds.

For investors, the key details include the six-year maturity to June 2032, the minimum interest rate of 5.60% per annum, the indicative issue margin range of 1.80% to 1.90%, the potential NZ$150 million maximum offer size and the availability of an exchange mechanism for eligible RYM010 bondholders.

Further clarity will come once the bookbuild is completed and Ryman announces the final issue margin and interest rate.