Full Year Results Investor Presentation 2023
DEBT FACILITIES AND
BANKING COVENANTS
Synlait is pleased to announce it has successfully refinanced its debt facilities, introducing four new banks into the banking syndicate.
The new syndicate, led by ANZ Bank, provides increased service offerings and capacity at a very reasonable cost.
Synlait's revised syndicated bank facilities are with ANZ Bank, Bank of China, China
Construction Bank, HSBC and Rabobank. The secured facilities are summarised as follows:
1. Working capital facility of $240m, maturing 1 October 2024, together with a $10m on-demand
bilateral facility. This facility is a seasonal facility where the facility limit changes at several times
during the term of the facility.
2. Revolving credit facilities of $230m. These facilities also step down over time with maturity
dates between 31 July 2024 and 1 October 2025.
In addition, the Group is required to make a prepayment of at least $130m by no later than
31 March 2024.
Synlait also has borrowings through retail bonds:
Synlait currently has $180m of five-year unsecured subordinated fixed rate bonds which were listed
on the NZX Debt Market in December 2019, and mature on 17 December 2024.
Synlait has key financial covenants in place with its banking syndicate.
Covenants for the recently executed facilities agreement are:
1. Total shareholder funds of no less than NZD $600m at all times.
2. Working capital ratio of no less than 1.5x at all times.
3.
4.
5.
Interest coverage ratio of no less than 2.25x for the 31 July 2024 reporting date, increasing
to 3.0x for the 31 July 2025 reporting date.
Leverage ratio of no greater than 3.5x for the 31 July 2024 reporting date, decreasing to no
greater than 3.25x on and from the 31 July 2025 reporting date.
Senior leverage ratio of no greater than 2.25x for 31 July 2024.
Synlait capital structure requirements:
Synlait has completed a comprehensive review of its capital structure. The refinance of bank
debt was the first step in execution of its capital strategy. Synlait is likely to refinance the
subordinated bond in part or wholly with senior bank debt, however will continue to explore
options before a final decision is made.
To ensure successful refinance of the bond in December 2024, Synlait is working towards
deleveraging by divesting Dairyworks, managing working capital efficiently, increasing
profitability and reducing capital expenditure.
ANZH 中国银行
BANK OF CHINA
PAGE 11
CCB
中国建设银行
China Construction Bank
HSBC
Rabobank
FULL YEAR RESULTS INVESTOR PRESENTATION 2023View entire presentation