Ryman Healthcare Extends Debt Maturity to Five Years with $2 Billion Facility
Ryman Healthcare has completed a full refinancing of its $2 billion syndicated loan facilities, extending the average maturity to five years and enhancing funding flexibility. The move aligns with the company’s disciplined growth strategy and sets the stage for future capital management decisions.
- Full refinancing of $2.0 billion syndicated loan facilities completed
- Average debt tenor extended to five years
- New covenant package offers increased headroom and resilience
- Total debt facilities remain around $2.2 billion including $150 million retail bond
- Board signals ongoing review of capital management and dividend policies in FY26
Strategic Debt Refinancing Completed
Ryman Healthcare, a leading operator of retirement villages in New Zealand and Australia, has successfully refinanced its entire $2 billion syndicated loan facility. This refinancing extends the average maturity of its debt to five years, providing the company with greater financial flexibility and stability. The move follows Ryman’s $1 billion equity raise earlier this year and aligns with its strategic focus on disciplined growth.
Enhanced Funding Structure and Covenants
The new debt facility, which remains broadly the same size at approximately $2.2 billion including a $150 million retail bond, introduces improved loan pricing and a covenant package designed to offer increased headroom. Notably, the interest cover ratio covenant has been set at 1.50 times starting September 2026, excluding interest on designated development debt. This structure aims to provide resilience through economic cycles while supporting ongoing development projects.
Implications for Growth and Capital Management
CEO Naomi James described the refinancing as a "balance sheet reset" that better aligns funding with Ryman’s operating model. The company now holds over $500 million in debt headroom as of September 2025, positioning it well to pursue its strategic priorities. Meanwhile, the Board has reiterated its commitment to reviewing capital management and dividend policies in the upcoming fiscal year, signaling potential adjustments as market conditions evolve.
Market Position and Outlook
With 49 retirement villages housing over 15,000 residents and a workforce of 7,800, Ryman Healthcare remains a dominant player in the retirement living sector. This refinancing not only secures its financial footing but also underscores confidence from its lending partners. Investors will be watching closely how the company leverages this enhanced flexibility to drive growth and shareholder returns in FY26 and beyond.
Bottom Line?
Ryman’s refinancing strengthens its financial foundation, but upcoming capital management decisions will be key to watch.
Questions in the middle?
- How will Ryman’s revised covenant terms impact its financial flexibility during economic downturns?
- What changes to dividend policy might investors expect in FY26 following this refinancing?
- Will Ryman leverage its $500 million debt headroom for new developments or acquisitions?
