Krispy Kreme enters $500 million credit facility upon purchase by JAB

By Wendy Van Sickle

Columbus, Ohio, July 27 – Krispy Kreme Doughnuts, Inc. entered into a new credit agreement for a revolving credit facility up to $150 million and a term loan up to $350 million on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement was entered in connection with the company’s acquisition by JAB Beech Inc.

Barclays was the lead bank on the deal.

Proceeds will be used to refinance Krispy Kreme indebtedness, to fund a portion of the merger consideration, for working capital and general corporate needs of the company and its subsidiaries and to pay certain fees, costs and expenses related to the transaction.

Upon the consummation of the merger on Wednesday, Krispy Kreme repaid its credit agreement with Wells Fargo Bank, NA, dated July 12, 2013.

As previously reported, JAB Beech bought Krispy Kreme for $21.00 per share in cash, or a total equity value of about $1.35 billion.

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

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