Banking facilities update

Synlait Milk Limited (Synlait) advises that it has temporarily increased its banking facilities to provide additional working capital funds.

The increase to Synlait’s banking facilities will be enabled by a new Revolving Credit Facility of NZ$50 million for the period 14 November 2025 to 31 March 2026.

While Synlait had planned for a lean working capital program for the current financial year (FY26), it has been more difficult to manage due to the resulting cashflow impacts and expenses from manufacturing challenges that the company experienced earlier in the calendar year. Although these challenges have been largely resolved, Synlait is experiencing related cost impacts in FY26.

In addition, the banking facilities agreement’s quarterly and annual minimum EBITDA Event of Review thresholds have been adjusted for the current financial year to accommodate the revised earnings.

Synlait continues to remain in compliance with its banking covenants.

As per the company’s 29 September 2025 market update, Synlait expects to significantly reduce its debt over the current financial year by utilising the sale proceeds of the North Island assets to pay down debt. The sale is due to complete on 1 April 2026, subject to regulatory and customary conditions. Synlait shareholders need to approve the transaction, however, majority shareholder Bright Dairy has lodged its postal vote in favour, so that condition will be achieved.

For more information contact:
Media
Jo Scott
Corporate Affairs Manager
P: +64 021 883 123
E: [email protected]

Investors
Hannah Lynch
Head of Strategy and Corporate Affairs
P: +64 021 252 8990
E: [email protected]

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Announcement PDF