Synlait's Bank Refinancing Documentation

Synlait Milk Limited (ASX:SM1) has finalized the documentation for a new bank refinancing, totaling $450 million, with a syndicate of banks. The refinancing is subject to several conditions, including the receipt of equity raise proceeds and The a2 Milk Company settlement becoming unconditional. The new facilities are expected to be executed on Tuesday 1 October 2024, coinciding with the completion of the equity raise.

CEO Grant Watson's Comments on Bank Refinancing

The new bank refinancing is another positive step forward in Synlait's business recovery plan and actions to deleverage the company. We are pleased to provide certainty around our bank refinancing plans for our shareholders, customers, suppliers, and staff ahead of this week's special shareholders' meeting.

Summary of Synlait's Bank Refinancing

Synlait Milk Limited (ASX:SM1) has executed documentation for a new bank refinancing totaling $450 million with a syndicate of banks. The refinancing is subject to various conditions, including the receipt of equity raise proceeds and The a2 Milk Company settlement becoming unconditional. The new funding arrangements will replace the existing bank facilities in full and will be in addition to the $130 million shareholder loan Synlait drew down in July 2024. The completion of the bank refinancing is a condition of The a2 Milk Company supporting Synlait's recapitalization, which all shareholders will have the opportunity to vote on at a special shareholders' meeting on Wednesday 18 September 2024. Proceeds from the equity raise and certain tranches of the new facilities will be used to repay the outstanding bank debt and the bonds.