Synlait has announced updates on its balance sheet deleveraging plan, the dairyworks sale process, banking covenants, and full-year 2024 guidance.
The company has reached an agreement with Bright Dairy for a $130 million shareholder loan, pending shareholder approval.
This loan is expected to be drawn down in full to meet Synlait's prepayment obligation to senior lenders on July 15 2024.
However, it is a related party transaction and will require the approval of shareholders (other than Bright).
In regards to the dairyworks sale process, while the board has received interest from multiple parties, no binding offer has materialised and the sale process is no longer formally open.
Synlait also said it is unlikely to meet three of its current banking covenants as of July 31 2024, but the banking syndicate is reviewing proposed waivers.
The company's full-year 2024 EBITDA is still expected to be within the range of $45m to $60m, but the result is now forecasted to be at the lower end of the range.
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