Krystal gets new $90 million credit facility

By Sara Rosenberg

New York, June 9 - The Krystal Co. closed on a new $90 million senior secured credit facility. Bank of America was the lead arranger and is the administrative agent on the deal.

The facility consists of a $65 million term loan and a $25 million revolver, according to a company news release.

Proceeds were used to repay the entire $60.9 million outstanding balance of the company's 10.25% senior notes, which were scheduled to mature in 2007.

"This transaction provides a number of advantages for our company. Not only have we reduced our overall cost of borrowing and extended the ultimate maturity of remaining debt until 2009, we have also increased our strategic flexibility through more favorable borrowing covenants. We have also created a more efficient environment in which to reduce our debt levels in the future," said Larry Bentley, senior vice president and chief financial officer, in the release.

Krystal is a Chattanooga, Tenn., franchise and is an operator of quick-service restaurants.

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