Mrs. Fields' Cookies looking to refinance notes, expects to sell stores

By Peter Heap

New York, Nov. 7 - Mrs. Fields' Original Cookies Inc. said it is looking to refinance its $140 million of senior unsecured notes due Dec. 1, 2004.

The company also said it expects to sell further stores and may defer capital expenditures and extend vendor payments to meet its debt service obligations.

Mrs. Fields is "actively pursuing" a refinancing of the notes, according to a filing with the Securities and Exchange Commission.

Previously it announced hiring an investment banking firm to evaluate financing alternatives.

Borrowing restrictions under the senior note indenture and financial covenants under the credit facility with Foothill Capital Corp. mean the ability to obtain additional debt financing is "significantly limited," Mrs. Fields said in the SEC filing.

But the Salt Lake City-based company believes the measures it is taking to meet its debt service obligations mean it will have sufficient cash for the next 12 months.

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