Synlait Milk Limited Successfully Completes $217.8 Million Equity Raise

Highlights:

• Successful Capital Raise: Synlait Milk Limited (ASX: SML) has completed a $217.8 million equity raise from its major shareholders, Bright Dairy and The a2 Milk Company, strengthening its financial foundation.
• Change of Control for Bonds: The completion of the share issuance has triggered a change of control event for the SML010 bonds, allowing bondholders the right to redeem their bonds early starting October 1, 2024.
• Key Timetable: Important dates include trading suspension for SML010 bonds on October 1, 2024, resumption of trading on October 16, 2024, and maturity of remaining bonds on December 17, 2024.

At the time of writing, Synlait Milk Limited has successfully raised approximately $217.8 million in new equity capital from its two largest shareholders, Bright Dairy Holding Limited and The a2 Milk Company. This strategic move comes alongside the refinancing of the company’s existing bank facilities, signaling a robust step towards stabilizing its financial standing.

Strengthening Financial Foundations
Synlait Chair George Adams emphasized that these transactions establish a new foundation for the company's recovery efforts. "It is good to have these distractions behind us and the space to solely focus on our strategy to return the company to profitability," Adams stated. The capital raise aims to support Synlait's ongoing initiatives to enhance operational efficiencies and drive growth.

Change of Control for SML010 Bonds

In addition to the equity raise, Synlait confirmed a change of control event regarding its listed subordinated bonds, the SML010 bonds. This change, resulting from the completion of the share issuance to Bright Dairy, allows bondholders the option for early redemption. Holders can redeem their bonds starting October 1, 2024, until 5:00 PM on October 15, 2024, at a price of $1.00 per bond plus accrued interest, provided the trading price remains below $1.00.

Timetable for Bondholders

A timetable detailing the events related to the SML010 bonds has been released, highlighting the trading suspension starting October 1, 2024, and resuming on October 16, 2024. Remaining bonds will mature on December 17, 2024, but early redemption provides flexibility for investors during this transitional period.

Synlait's proactive measures through this equity raise and bond management reflect its commitment to enhancing financial stability and positioning itself for future growth.

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