29 November 2019
Synlait lodges Product Disclosure Statement and announces indicative margin
Synlait Milk Limited (Synlait) is making an offer of up to $150 million of five-year unsecured subordinated
fixed rate bonds (with the ability to accept up to $50 million of oversubscriptions at Synlait’s discretion)
maturing on 17 December 2024 to New Zealand institutional and retail investors (the Offer).
The Offer is expected to open on 9 December 2019 and close on 13 December 2019, with the bonds quoted
on the NZX Debt Market.
Synlait Chair Graeme Milne commented: “Synlait’s strategy to diversify our earnings, customer base and
sites, must extend to our balance sheet. We have experienced a period of sustained growth and investment,
and the Board believes that now is an appropriate time to issue Bonds. This will provide diversification of
funding and capital structure flexibility, while providing an interest-bearing investment option to those
wishing to invest in Synlait.”
Synlait has announced that the indicative margin range above the five year swap rate for the bonds is
2.50% to 2.70% per annum, subject to a minimum interest rate of 3.70% per annum. An announcement
of the interest rate for the bonds will be made following a bookbuild process, which is expected to be
completed on 6 December 2019.
ANZ Bank New Zealand Limited (ANZ) and Jarden Securities Limited (Jarden) are the Joint Arrangers. ANZ,
Deutsche Craigs Limited, Forsyth Barr Limited and Jarden have been appointed as Joint Lead Managers
with Hobson Wealth Partners Limited appointed as a Co-Manager for the Offer.
Synlait has lodged a Product Disclosure Statement (PDS) with the Registrar of Financial Services Providers
in New Zealand (Registrar) and made available further information on the register of offers of financial
products administered by the Registrar (Register Entry) (the PDS and the Register Entry are the Offer
Materials) in respect of the Offer. The Offer Materials are available at www.companies.govt.nz/disclose
under Synlait’s offer number (OFR12776). The PDS is also available at www.synlait.com/bondoffer or from
a Joint Lead Manager, the Co-Manager or a NZX Participant. The Offer Materials contain details of the Offer
and should be read before any investment decision is made. Investors should not subscribe for any bonds
in Synlait except on the basis of information in the Offer Materials and should consult their financial and
other advisers before making any investment in Synlait.
There is no public pool for the Offer, with all of the bonds being reserved for clients of the Joint Lead
Managers, the Co-Manager, NZX Participants and other approved financial intermediaries. Investors can
register their interest by contacting any of the Joint Lead Managers or the Co-Manager, as detailed below,
or their usual financial advisor.
This Offer is being made in accordance with the Financial Markets Conduct Act 2013.
Copies of the PDS, Synlait’s roadshow presentation and the indicative terms sheet are attached and are also
available at: www.synlait.com/bondoffer
Synlait Subordinated Bond Offer Roadshow Presentation
Synlait Product Disclosure Statement
Synlait Cleansing Notice_29 Nov 2019