Krispy Kreme Doughnuts announced that its subsidiary, Krispy Kreme Doughnut Corporation, closed senior secured credit facilities aggregating $225 million…
…comprised of a $75 million first lien senior secured revolving credit facility, a $120 million second lien senior secured term loan and a $30 million second lien prefunded revolving credit and letter of credit facility. The facilities were arranged by Credit Suisse First Boston as sole bookrunner, sole lead arranger and administrative agent, and Silver Point Finance, acting as co-arranger. Wells Fargo Foothill, Inc. is acting as syndication and collateral agent under the first lien facility.
Proceeds of the term loan were used to repay the approximately $90 million outstanding under Krispy Kreme Doughnut Corporation’s existing credit facility, pay fees and expenses related to the financing, and provide cash on the balance sheet. The first lien facility and the second lien revolving credit and letter of credit will be available to Krispy Kreme for general corporate purposes.
“This is an important, positive step for Krispy Kreme,” said Steve Panagos, President and Chief Operating Officer of Krispy Kreme Doughnuts, Inc. and Managing Director of Kroll Zolfo Cooper. “We are pleased to have found partners like CSFB and Silver Point who understand and believe in the power and potential of Krispy Kreme. With more liquidity and no near-term repayment deadlines, we look forward to getting back to the business of selling doughnuts and coffee.”
The new credit facilities will be filed as exhibits to Form 8-K, which will be made available on the Company’s website promptly after its filing with the Securities and Exchange Commission.
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