Krispy Kreme gets new $225 million credit facility

By Sara Rosenberg

New York, April 4 - Krispy Kreme Doughnut Corp., a subsidiary of Krispy Kreme Doughnuts Inc., closed on a new $225 million senior secured credit facility, according to a company news release.

Credit Suisse First Boston acted as the sole bookrunner, sole lead arranger and administrative agent on the facility, and Silver Point Finance LLC acted as the co-arranger.

The facility consists of a $75 million first-lien revolving credit facility, a $120 million second-lien term loan and a $30 million second-lien pre-funded revolver and letter-of-credit facility.

Wells Fargo Foothill Inc. acted as the syndication and collateral agent under the first-lien facility.

Term loan proceeds were used to repay the about $90 million outstanding under the company's existing credit facility, to pay fees and expenses related to the financing and to provide cash on the balance sheet.

Revolver and letter-of-credit borrowings are available for general corporate purposes.

"With more liquidity and no near-term repayment deadlines, we look forward to getting back to the business of selling doughnuts and coffee," Steve Panagos, president and chief operating officer of Krispy Kreme and managing director of Kroll Zolfo Cooper LLC, said in the release.

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

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