Krispy Kreme amends facility to permit plant sale, increases margins

By Jennifer Chiou

New York, Jan. 25 - Krispy Kreme Doughnuts, Inc.'s wholly owned subsidiary, Krispy Kreme Doughnut Corp., entered into the second amendment to its credit agreement on Wednesday, permitting the sale of its mix manufacturing and distribution facility in Effingham, Ill., and increasing the margins on the loans by 75 basis points, according to an 8-K filed with the Securities and Exchange Commission.

The interest has been increased to 2.5% for the loans based on the Alternate Base Rate and 3.5% for the Libor-based loans.

The Winston-Salem, N.C.-based branded specialty retailer of doughnuts said that the amendments permitted the distribution facility sale, provided that the net proceeds are used to prepay loans under the credit agreement.

Credit Suisse, Cayman Islands Branch was the administrative agent, collateral agent, issuing lender and swingline lender.

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