Metlifecare Announces $70m Capital Raising

30 May 2013

Metlifecare Announces $70m Capital Raising to Reduce Debt and Fund Growth

TARGETED BUILD RATE OF 200+ NEW UNITS AND BEDS PER YEAR BY FY15

Leading retirement village and aged care provider, Metlifecare Limited, is raising $70 million in new capital from a placement to institutional and eligible investors. Metlifecare has achieved its stated goals following the 2012 merger and is now looking to strengthen its balance sheet and fund future growth. Goldman Sachs is underwriting the placement and acting as sole lead manager, placement agent, and book runner.

Following the institutional placement, Metlifecare is offering a Share Purchase Plan (SPP) to eligible shareholders, with further details to be announced in due course. This will enable all Metlifecare’s shareholders to participate in the offer.

Since July 2012, when the merger with Vision Senior Living and Private Life Care Holdings was completed, Metlifecare has delivered on the objectives outlined in the June 2012 prospectus. The company is on track to exceed its cash flow target of $60.7 million [The cash flow target is exclusive of one-off integration costs and interest cost. ] for the 2013 financial year, has undertaken two significant asset sales ($38 million) and is continuing to maintain and enhance its continuum of care at existing villages.

Following the capital initiatives, Metlifecare’s non-development debt is expected to be substantially eliminated. Chairman of Metlifecare, Mr Peter Brown, commented: “The capital initiatives announced today are intended to ensure there is more capacity to progress consents and developments on our existing sites, allow us to further expand our greenfield land bank and fund the development of aged care facilities and services. Our build rate is targeted to increase to 200+ new units and beds per annum by FY15.”

Metlifecare is an established operator, with a balanced portfolio of mature and new villages. The company’s portfolio is located in the North Island, with the majority of villages located in the premium Auckland, Hamilton and Bay of Plenty regions. 30 May 2013

The company currently operates 23 villages, comprised of 3,812 units and 361 care beds. It has a further pipeline of 903 units and care beds, of which 78 are currently under construction. In addition, greenfield sites, at Unsworth Heights and Glenfield in Auckland, are at various stages of resource consent and planning and will contain care facilities and the full continuum of care.

If Retirement Villages New Zealand Limited does not participate in the capital raising, its shareholding will reduce from approximately 43% to approximately 39% following the placement.

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PRES__MET_Equity_Raising_Considerations__30_5_13.pdf

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