Synlait's Equity Raise and Bonds Change of Control

Synlait Milk Limited (Synlait) (NZX:SMLSM1) has successfully completed the issuance of approximately $217.8 million of new equity capital to its two largest shareholders, Bright Dairy Holding Limited (Bright Dairy) and The a2 Milk Company. This was accompanied by the refinancing of Synlait's existing bank facilities. Additionally, the settlement with The a2 Milk Company is now effective. The completion of the equity raise and the settlement mark a significant step for Synlait as it aims to progress its business recovery and focus on returning the company to profitability. Furthermore, a change of control event has occurred today in respect of Synlait's listed subordinated bonds with the ticker SML010 bonds, triggering an early redemption right for bondholders.

Chair's Perspective on Transactions

Synlait Chair George Adams expressed his satisfaction with the completed transactions, stating, 'Today's transactions provide a new foundation on which Synlait can further progress its business recovery. It is good to have these distractions behind us and the space to solely focus on our strategy to return the company to profitability.'

Summary of Synlait's Announcement

Synlait has successfully completed an equity raise of approximately $217.8 million with its two largest shareholders, Bright Dairy and The a2 Milk Company, and has also finalized the settlement with The a2 Milk Company. These developments mark a significant milestone for Synlait as it endeavors to advance its business recovery and concentrate on achieving profitability. Additionally, a change of control event has occurred in relation to the SML010 bonds, triggering an early redemption right for bondholders. The company has provided details for bondholders to exercise their redemption right, including the redemption price and the timeline for the process. The completion of these transactions and the initiation of the change of control process for the SML010 bonds demonstrate Synlait's commitment to addressing its financial structure and ensuring the smooth progress of its corporate strategy.