Synlait has successfully completed its bank refinancing, securing new funding arrangements totalling $350 million.
The refinancing package includes a secured overdraft facility of $15m, two secured revolving credit facilities worth $123m and $110m, and two secured term loan facilities of $25m and $47m.
Additionally, there are two secured revolving credit facilities in NZD/CNH, each valued at $15m.
The new facilities, which are set to mature on June 30, 2026, are subject to the satisfaction of customary conditions precedent.
Synlait's new banking syndicate comprises ANZ Bank, China Construction Bank, Bank of China, Rabobank, Industrial Commercial Bank of China, HSBC, Bank of Communications, and Bank of East Asia.
The key financial covenants include a net senior leverage ratio of 2.5x for FY26, a working capital ratio of 1.35x for a specified period, an interest cover ratio of 2.5x for FY26, and a requirement for shareholders' funds to always exceed $500m.
Synlait also has a $130m shareholder loan from Bright Dairy International Investment, maturing on July 12, 2026.
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