Krispy Kreme Obtains Amendments To Credit Facilities

PR Newswire:

Krispy Kreme Doughnuts, Inc. today announced it has obtained amendments to the Company’s secured credit facilities which, among other things, relax certain financial covenants contained therein. Those covenants previously were scheduled to become more stringent during fiscal 2009.

The amendments also provide that the interest rate on the loans outstanding under the facilities will increase from LIBOR plus 3.50% to LIBOR plus 5.50%, with a minimum LIBOR rate of 3.25%, and fees on letters of credit outstanding under the facilities will increase from 3.75% to 5.75%. As of February 3, 2008, the outstanding balance of the term loan was $76.1 million and outstanding letters of credit were $20.3 million.

There were no amounts drawn under the revolving facility, which was reduced from $50 million to $30 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.