Synlait secures $450m in banking refinancing

Synlait has announced the refinancing of its banking facilities, entering into definitive documentation with a new banking syndicate.

The new facilities, totalling $450 million, include a working capital facility, a revolving credit facility and a term loan facility.

The implementation of the refinancing is subject to the satisfaction of several conditions, including the receipt of equity raise proceeds and the unconditional settlement with The a2 Milk Company.

The new banking syndicate comprises ANZ, Bank of China, Bank of Communications, China Construction Bank, HSBC, Industrial and Commercial Bank of China, Kiwibank and Rabobank.

Synlait's chief executive, Grant Watson, said the refinancing is a positive step in the company's business recovery plan and deleveraging efforts.

The new facilities will replace Synlait's existing bank facilities and be in addition to the $130m shareholder loan drawn down in July.