Synlait secures NZ$350m bank refinancing and extends shareholder loan

Synlait Milk Limited announced on September 26, 2025, the finalization of its planned bank refinancing, securing NZ$350 million in new funding arrangements. These facilities include a NZ$15 million secured overdraft, a NZ$123 million secured revolving credit facility A, a NZ$110 million secured revolving credit facility B, a NZ$25 million secured term loan facility A, a NZ$47 million secured term loan facility B, and two secured revolving credit NZD/CNH facilities of NZ$15 million each. All facilities, excluding the overdraft, mature on June 30, 2026, with a NZ$50 million step-down in revolving credit facility A from February 28, 2026.

The new banking syndicate comprises ANZ Bank, China Construction Bank, Bank of China, Rabobank, Industrial Commercial Bank of China, HSBC, Bank of Communications, and Bank of East Asia. Key financial covenants include a net senior leverage ratio of 2.5x for FY26, a working capital ratio of 1.35x (August-March) and 1.5x (April-July), and an interest cover ratio of 2.5x for FY26.

Additionally, Synlait maintains a NZ$130 million shareholder loan from Bright Dairy International Investment Limited, which has been extended for a further 12 months, maturing on July 12, 2026. Shareholders' Funds are required to exceed NZ$500 million at all times.