Troubled US doughnut maker and retailer Krispy Kreme has announced that its subsidiary, Krispy Kreme Doughnut Corporation, has obtained credit facilities totalling US$225m, giving the company some breathing space to turn itself around.
The facilities were arranged by Credit Suisse First Boston and Silver Point Finance.
Some proceeds were used to repay the approximately $90m outstanding under Krispy Kreme’s existing credit facility, pay fees and expenses related to the financing, and provide cash on the balance sheet. The remainder will be available to Krispy Kreme for general corporate purposes.
“This is an important, positive step for Krispy Kreme,” said Steve Panagos, president and chief operating officer of Krispy Kreme Doughnuts and managing director of Kroll Zolfo Cooper. “We are pleased to have found partners like CSFB and Silver Point who understand and believe in the power and potential of Krispy Kreme. With more liquidity and no near-term repayment deadlines, we look forward to getting back to the business of selling doughnuts and coffee.”