A broker's view - Jarden obviously not happy that they missed out on a role in the CR (nice big fat fees) so take view with that in mind.
As for the narrative that the CR is long talked about, has anyone actually seen any commentary on that save for on ST?
In fact, it came as a surprise (& shock) for the market!
https://www.goodreturns.co.nz/articl...gs-season.html
Jarden's view :
"Ryman’s long-talked-about capital raising announcement finally arrived this week with the company revealing it will seek $902 million to repay debt, largely to pay down its US private placement (USPP).
Fund managers were reluctant to talk about the offer, given that they were in the midst of deciding whether to commit to backing the raise.
Jarden’s Arie Dekker noted the repayment of the USPP came with significant exit costs and there were still “a lot of questions to work through”.
As well as repaying the debt, Ryman said it had slowed and/or paused construction at six existing sites and revised its development pipeline towards lower-density developments, reflecting prudent management decisions made in response to elevated debt levels, changing market conditions including rising interest rates and the outlook for residential house prices.
In an investor presentation, the company said lower-density developments would mean a streamlined design and consenting process, lower peak debt requirements due to the ability to sell units and a shorter time to complete.
Dekker said that while targeting an unwinding of development work in progress for a neutral total cashflow outcome would stabilise total debt, it was not the same as addressing how the company would correct a lack of free cashflow from its large existing asset base."