Synlait Milk secures new $450m banking facility
Summary
It has a working capital ratio of 1.2x from August 1, 2024, and March 31, 2025, and 1.5 from April 1 to July 31 next year.It also has an interest cover ratio of 2.5x for the financial year.That applies quarterly and is based on actual ebitda for the completed applicable period and forecast for the remaining part of the financial year.Shareholders funds always have to exceed $500m.The new facilities will replace its existing ones and be in addition to a $130m shareholder loan.The refinancing, which had been signalled, has several conditions, including the upcoming capital raise.Shareholders will gather at Synlaits Dunsandel site on Wednesday to vote on a proposed $218m capital raise from its two largest shareholders, Bright Dairy and The a2 Milk Company, to allow the company to deleverage its debt-laden balance sheet.Chief executive Grant Watson said the refinancing was another positive step forward in Synlaits business recovery plan and actions to deleverage the company.We are pleased to provide certainty around our bank refinancing plans for our shareholders, customers, suppliers and staff ahead of this weeks special shareholders meeting.Proceeds from the equity raise and certain tranches of the new facilities will be used to repay outstanding bank debt and its $180m listed bond.