(Adds details of equity raise, background)
April 22 (Reuters) - Hospital operator Ramsay Health Care RHC.AX plans the largest equity raising by an Australian company since the coronavirus outbreak and will temporarily suspend its dividend to save cash amid disruptions from the pandemic.
Ramsay said on Wednesday it would raise up to A$1.4 billion ($880 million), including A$1.2 billion in new equity in a share placement and up to an additional A$200 million through a non-underwritten share purchase plan. the outbreak began, companies in Australia and New Zealand have tapped equity markets to raise more than $8.5 billion in a bid to boost liquidity. Regulators in both countries have also eased rules to help firms shore up capital. share placement will be at price of A$56 per share, a 12.9% discount to the stock's Tuesday close.
"The equity raising will strengthen Ramsay's balance sheet and liquidity position, as well as increase financial flexibility during the unprecedented operating environment," Managing Director Craig McNally said.
The company added that lenders to the Ramsay Funding Group, an entity the includes the firm's wholly-owned units, have agreed to amend or waive key banking covenant tests for this year.
Ramsay said its chain of 72 hospitals across Australia was ready to resume some surgeries after the government on Tuesday eased some restrictions on movement and activity, and declared the country was on the road to recovery from the virus outbreak. ($1 = 1.5918 Australian dollars)