QINGDAO, China and ROCKVILLE, Md., Oct. 17 /Xinhua-PRNewswire/ -- Synutra International, Inc. (Nasdaq: SYUT, "Synutra"), one of China's leading manufacturers of dairy-based nutritional products for infants, children and adults, today announced that it has entered into a Loan and Collateral Agreement (the "Loan Agreement") with ABN AMRO Bank N.V. to provide loans to Synutra of up to US$35 million. The proceeds of the Loan Agreement will be used to pay obligations outstanding under the US$35 million credit facility dated April 19, 2007 between Synutra, Liang Zhang, Xiuqing Meng, and ABN AMRO Bank N.V.
As is customary for agreements of this type, the Loan Agreement provides for mandatory prepayment upon the occurrence of certain events and contains customary and financial covenants, upon occurrence of which, the Company's obligations under the Loan Agreement may be accelerated and the lending commitments terminated.
More details are included in a Form 8-K Current Report filed by the Company with the United States Securities and Exchange Commission today. Synutra's Form 8-K is available on-line at: http://www.synutra.com.
About Synutra International, Inc.
Synutra operates eight subsidiaries developing, producing, distributing and selling dairy-based nutritional products across the People's Republic of China. It offers its products for infants, children, adults and pregnant women and nursing mothers under the brand series of "Super," "U-Smart" and "U-Strong." The Group's extensive sales network covers 24 provinces, 264 cities and more than 1320 counties throughout China. For more information, please contact Weiguo Zhang of Synutra, Inc. (+1-301-840-3888, wzhang@synutra.com), Brian Rafferty of Taylor Rafferty (+1-212-889-4350, synutra@taylor-rafferty.com) or visit: httop://www.synutra.com.
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.
