Oceania Healthcare (ASX:OCA) Announces Refinance and Market Update
Refinance Completed
Oceania Healthcare successfully refinanced its debt facilities on 4 March 2025. The refinance saw strong demand from existing and new lenders, leading to the addition of a new syndicate member, optimal pricing, extended tenor, and unchanged covenants. The Group does not require additional capital or bank borrowings.
Improved Sales Momentum
Sales increased with new sales volumes up by 29% and resale volumes up by 6% in 3Q25 compared to 3Q24. Progress includes a 34% occupancy at The Helier in Auckland and completed apartment developments at Waterford in Auckland and Awatere in Hamilton. CEO Suzanne Dvorak stated, “We have a clear priority to continue to increase our sales cadence. Unsold stock remains our biggest lever to reduce debt.”
Portfolio Transition
The company is transitioning its portfolio by completing developments and divesting non-core sites. This shift aims for a retirement portfolio mix of over 50%, currently at 54% care and 46% ILU, with a focus on premium offerings and amenities.
Business Optimisation
A centralised team is being established to deliver long-term savings of $10-15 million annually. The $5 million annualised cost right-sizing program announced at HY25 has been completed, with benefits expected from FY26. Additionally, Oceania decided to close the Wesley Institute of Nursing Education, with the final intake in March 2025, following changes to certification pathways for overseas nurses.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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