Synlait Milk Limited (ASX: $SM1) has confirmed the signing of documentation with its bank lenders to implement the amendments and waivers to its banking facilities as previously indicated in the Synlait notice of meeting dated 25 June 2024. The company had requested waivers for its leverage ratios and interest coverage ratio for 31 July 2024, along with a deferral of the maturity/limit step-downs for June and July 2024, until the completion of Synlait's planned equity raise. The approval is contingent upon the addition of a covenant to achieve a minimum adjusted EBITDA for FY24 of $45 million.
The signing of the banking amendment and waiver documentation is a crucial step for Synlait as it provides the necessary flexibility to navigate the current financial landscape. We are appreciative of the support and understanding shown by our bank lenders as we work towards achieving our strategic objectives. The addition of the covenant to achieve a minimum adjusted EBITDA for FY24 reflects our commitment to financial prudence and sustainable growth. We remain focused on executing our planned equity raise and are optimistic about the opportunities it will unlock for the company.
Synlait Milk Limited (ASX: $SM1) has successfully reached an agreement with its bank lenders to implement the requested waivers and deferral, as outlined in the Synlait notice of meeting dated 25 June 2024. The approval is conditional upon the inclusion of a covenant to achieve a minimum adjusted EBITDA for FY24 of $45 million. The company's proactive approach in securing this agreement demonstrates its commitment to managing its financial obligations while pursuing its strategic initiatives. Looking ahead, Synlait remains focused on completing its planned equity raise and leveraging the flexibility provided by the banking amendments to drive sustainable growth and value creation for its stakeholders.