Synlait has announced the successful completion of the issuance of approximately $217.8 million of new equity capital to its two largest shareholders, Bright Dairy and The a2 Milk Company.
This was done alongside the refinancing of Synlait's existing bank facilities.
The company also confirmed that the settlement with a2 Milk is now effective.
Synlait's chair, George Adams, said these transactions provide a new foundation for the company's business recovery and allow them to focus on returning to profitability.
In a separate development, Synlait said a change of control event has occurred in relation to its listed subordinated bonds, SML010, due to the issuance of shares to Bright Dairy.
This has triggered an early redemption right for bondholders.
Holders of the SML010 bonds will have the right to redeem their bonds early from October 1, 2024, to October 15, 2024.
The redemption price is expected to be $1 per bond, plus accrued interest.
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