Synlait Milk (ASX:SM1, NZE:SML) said it is progressing talks with existing and new lenders to refinance its senior syndicated bank facilities due June 30, and remains on track to complete the refinancing by that date, according to a Monday filing with the New Zealand bourse.
The new senior facilities lenders require that the NZ$130 million shareholder loan provided by Bright Dairy International Investment to the company in July 2024 be replaced with a replacement Bright loan on broadly similar terms, per the filing.
The company, through an independent directors' committee, has secured a new loan agreement with Bright, which has approved its participation and plans to provide the facility via the Shanghai Stock Exchange, subject to regulatory approvals and final documentation.
The replacement loan maintains the same principal, remains subordinated and second-ranking secured with no financial covenants, but introduces a fixed two-year non-extendable term and a floating rate based on the bank bill benchmark rate, with pricing aligned to the weighted average margin of the senior facilities pre and post-refinancing, the filing said.
The company has also provided a preliminary trading update for the four months to April 30, reporting an unaudited net loss after tax of NZ$12 million and net assets of NZ$720.8 million, mainly impacted by external headwinds concentrated in January, the filing added.