Krispy Kreme plans $500 million credit facility for purchase by JAB

By Sara Rosenberg

New York, May 31 – Krispy Kreme Doughnuts Inc. has received a commitment for a $500 million senior secured credit facility to help fund its acquisition by JAB Beech Inc., according to a PREM14A filed with the Securities and Exchange Commission on Tuesday.

Barclays is the lead bank on the deal.

The facility consists of a $150 million revolver and $350 million in term loans.

Under the agreement, Krispy Kreme is being bought for $21.00 per share in cash, or a total equity value of about $1.35 billion.

Closing is expected in the third quarter, subject to customary conditions, including receipt of regulatory and shareholder approvals. The transaction is not subject to a financing condition.

Krispy Kreme is a Winston-Salem, N.C.-based specialty retailer and wholesaler of sweet treats and complementary products.

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