highly doubt it, the next 6 months will be their biggest half year of finalised new units ever, huge amount of extra booked assets and equity, their bank relationships are very strong.
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RYM do not have a history of going to their shareholders for more capital.
Ryman asked Craigs Investment Partners Limited (CIP) to underwrite shares not taken up by Ryman shareholders in connection with the dividend reinvestment plan on the same essential terms as under the DRP. Does this indicate Ryman is desperate to retain the cash?
Since the DRP is entirely voluntary, I would say there is no such thing as "shares not taken up in conjunction with the DRP." if the shares are not taken up, that means they don't exist. I would say that what Rymans is doing is inviting Craigs to take part in a 'discounted cash issue' on the same terms as the DRP participants which will forever dilute the shareholdings of existing shareholders, all done at a rock bottom price. To use the 'Claytons' analogy:
It sounds like: "The dividend that Ryman are paying when they aren't paying a dividend."
IOW, the short answer to your question is 'yes'.
SNOOPY
Snoops - underwritten drps not that unusual
Think mercury recent drps were underwritten
Been a few others over the years
I would have thought if the shareholders do not take up shares through the dividend reinvestment plan the dividends get paid out. What is an underwriter, underwriting?
Do they provide additional share equity because too much cash went out as dividends? That sounds more like a capital raising than underwriting. Probably just terminology, but the DRIPs I would have thought would only get capital from those shareholders wanting to join the DRIP. You would not underwrite the shares not taken up by the shareholders who choose to take the cash unless you really need the cash and cannot afford to pay the dividend in the first place.
Not sure it indicates they are desperate, but yes, they clearly don't want to pay the dividend. So yes, it is an underwritten capital raise to pay the dividend. But winner is right - these things are not that unusual. I remember INA (on the ASX) likes to do that as well ... and hey, they are a solid company.
Bit of a bugger though considering the share price ... better they would have done their CR when SP was twice of today.
It seems that just 3 weeks ago Ryman did not realize that a lot of shareholders would not want to convert dividends to shares. This is the problem!
Well that's a fail. Just forking out for underwriting fees has annoyed this holder. They probably paid a decent fee for advice to be told to pay the advisees that fee too. As an aside one sometimes wonders what a CFO does to earn a massive salary these days if they are merely massaging a bit of accounting software and outsourcing proper financing decisions. Perhaps no one runs a mean tea trolly like a CFO.
Surely if Ryman want a bit of extra capital the cheapest way is merely to e.g. halve the dividend. Doesnt require any nasty underwriting or spurious advisory fees. It's hardly a yield stock so anyone miffed at their reduced payout without realising it is in the long term interest of their holding might be better served with a different type of stock.