Krispy Kreme amends loan to extend deadline, change covenants, rates

By Sara Rosenberg

New York, Dec. 13 - Krispy Kreme Doughnuts Inc. amended its senior secured credit facility, extending the deadline to provide restated financial statements to lenders to April 30, 2006, changing some financial covenants and increasing rates, according to a company news release.

Financial covenants that were modified include increasing the maximum permitted leverage ratio for fiscal 2007 and decreasing the minimum interest coverage ratio through the end of fiscal 2007.

Also as part of the amendment, interest margins on, and some fees under, the credit facility were increased through the end of fiscal 2007, which is expected to result in about $300,000 of incremental interest expense in fiscal 2006 and $2.25 million of incremental interest expense in fiscal 2007.

Krispy Kreme is a Winston-Salem, N.C.-based retailer of branded doughnuts.

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