Synlait secures $50m credit facility for capital

Synlait has announced a temporary increase to its banking facilities in order to secure additional working capital funds.

The company said the increase will be facilitated by a new $50 million revolving credit facility, which is set to be in effect from Nov 14, 2025, to March 31, 2026.

Synlait explained that while it had initially planned for a lean working capital programme for the current financial year, it has faced difficulties in managing this due to the cashflow impacts and expenses resulting from manufacturing challenges earlier in the year.

Although these challenges have been largely resolved, the company said it is still experiencing related cost impacts.

As a result, the agreement with its banking facilities has been adjusted, with the quarterly and annual minimum ebitda event of review thresholds modified for the current financial year.

However, Synlait said it remains in compliance with its banking covenants.

The company also expects to significantly reduce its debt over the current financial year by utilising the sale proceeds of its North Island assets.

The sale is scheduled to be completed on April 1, 2026, pending regulatory and customary conditions.

Synlait said the transaction will require shareholder approval, but majority shareholder Bright Dairy has already lodged its postal vote in favour.