Synlait finalises refinancing & advises changes to balance date

NEW ZEALAND – Synlait has finalised a new bank financing arrangement totalling US$ 180.8 million (NZ$320 million) following discussions with new and existing lenders.

In an announcement on NZX, the company said its new bank funding syndicate will be made up of ANZ Bank, China Construction Bank, Bank of China, Shanghai Rural Commercial Bank, HSBC, China Merchants Bank, Bank of Communications, Industrial Commercial Bank of China and Bank of Beijing. 

The new bank funding arrangements include a US$8.5 million (NZ$15 million) overdraft, US$82.4 million (NZ$146 million) in working capital, a US$ 67.2 million (NZ$119 million) secured term loan, US$8.4 million (NZ$15 million) in revolving credit, and an additional US$14.1million (NZ$25 million) secured term loan.

Synlait acting CEO Leon Fung said it is a valuable reset that provides the company with a disciplined pathway to progress Synlait’s financial recovery as the company uplifts its operational stability. 

“We are still in the stabilise and simplify phases of our recovery roadmap with an important winter shut underway that will ensure our Dunsandel facilities are well-positioned for the next dairy season,” Fung said.

One of the requirements of the new lenders is that the US$73.4 million (NZ$130 million) shareholder loan that Bright Dairy provided to Synlait in July 2024 be replaced with a new loan of the same amount.

“The financial performance for the above four-month period reflects that, as previously disclosed in its half-year result, Synlait has faced a number of headwinds outside of its control,” the company said at the time.

“The majority of the negative financial impact relates to the month of January 2026. Synlait remains focused on progressing operational improvements and balance sheet strengthening following the North Island asset sale. 

Repayment of the old Bright shareholder loan and drawdown of the replacement Bright shareholder loan is expected to occur in early July, after the bank refinancing is completed.

Synlait’s board also advised a change of balance date for its financial reporting from July 31 to December 31 to align with Bright Dairy’s.

While its next balance date will remain July 31, the next financial reporting period after that will be a five-month transitional period from August 1-December 31.

After that, its financial reporting periods will be for a full 12 months ending on December 31 each year. 

The company is currently working through the approach to reporting for this transitional period and will provide an update once the final decisions are made.

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