Synlait Milk Limited (ASX: SM1), a New Zealand-based company that produces a range of dairy products and ingredients, has announced that it has entered into documentation to provide for certain amendments, waivers, and extensions in relation to its syndicated bank facilities. The company sought these changes following its recent half-year performance update and in anticipation of receiving funds from the sale of its North Island assets, which is expected to be finalised by 1 April 2026.
The amendments include an extension to the date of the $50 million limit step-down for its Revolving Credit Facility A, now set for the earlier of 30 April 2026 or three business days after the settlement of the North Island assets sale. Furthermore, the quarterly minimum EBITDA Event of Review threshold for the half-year ending 31 January 2026 has been waived. Synlait has also agreed to amended minimum EBITDA thresholds for the periods ending 30 April 2026 and 31 July 2026.
The net senior leverage ratio for the full year 2026 balance date (31 July 2026) has been suspended. The interest cover ratio has been waived for the 31 January 2026 test date, and amended for the 30 April 2026 and 31 July 2026 test dates. In addition, the amendments also contemplate the extension of the maturity date for its Revolving Credit Facility A2 (scheduled to mature no later than 31 March 2026) to align with the extended Revolving Credit Facility A step-down date referred to above, but this is subject to the approval of one remaining Synlait lender.
