Krispy Kreme Seeks Amendments To Credit Facilities

PR Newswire:

Krispy Kreme Doughnuts, Inc. today announced it has requested that its lenders approve certain amendments to the Company’s secured credit facilities which, among other things, would relax certain financial covenants contained therein. Those covenants currently are scheduled to become more stringent during fiscal 2009.

Based on unaudited results, the Company was in compliance with the financial covenants in its credit facilities as of February 3, 2008, the end of the Company’s 2008 fiscal year. While the Company believes it will be able to obtain the requested amendments, there can be no assurance that the lenders will agree to them. In connection with any amendment, the cost of credit extended to the Company under the facilities will increase. As of February 3, 2008, the outstanding balance of the term loan under the facilities was $76.1 million and outstanding letters of credit under the facilities were $20.3 million. The term loan balance reflects a prepayment of $10.9 million made on February 1 in connection with the completion of the previously announced sale of the Company’s mix manufacturing and distribution facility in Effingham, Illinois.

The Company currently anticipates filing its fiscal 2008 Annual Report on Form 10-K containing audited financial statements on or about April 17, 2008.