Synlait Milk has secured a NZ$320 million refinancing package backed by a new nine-bank syndicate including ANZ, HSBC, Bank of China and China Construction Bank, alongside a NZ$130 million replacement shareholder loan from majority shareholder Bright Dairy. The refinancing consists of a NZ$119 million secured term loan, NZ$146 million in seasonal working capital facilities, a NZ$15 million secured overdraft, a NZ$15 million revolving NZD/CNH facility and a NZ$25 million NZD/CNH term loan. The seasonal working capital facilities, one of the term loans, and both NZD/CNH facilities mature in June 2027 with a three-month extension option, while other term loan facilities mature 12 months after first drawdown. Under the new covenant framework, Synlait must maintain total shareholder funds above NZ$450 million and meet a net senior leverage ratio of three times by June 2027, with the seasonal working capital stepping down from NZ$146 million to NZ$86 million in March 2027 and further to NZ$26 million in June 2027. The company also announced a change in its financial balance date from 31 July to 31 December to align with Bright Dairy, with a five-month transitional reporting period from August to December before adopting a standard calendar year.
HSBC Holdings PLC
Bright Dairy & Food Co Ltd
China Construction Bank Co
Bank of China LimitedSecured NZ$320m refinancing package and NZ$130m shareholder loan, improving liquidity and financial stability.