Krispy Kreme completed the refinancing of its existing term loan A and revolving credit facilities with a new $700 million term loan A and $300 million revolver. The new facilities extend maturities until March 2028 at the same terms as the company’s existing facilities, with several new creditors joining the facilities. There is no change in the company’s net debt as a result of this refinancing.
According to an 8K filed with the SEC, BNP Paribas is the administrative agent and collateral agent for the new facilities, while Citibank is the administrative agent for the existing credit agreement.
“We are pleased that this well over-subscribed refinancing was completed with enthusiasm from both existing and as well as new financial partners,” Jeremiah Ashukian, CFO of Krispy Kreme, said. “With a strong balance sheet and growing free cash flow, we are well positioned for robust, capital efficient omni-channel growth in the coming years.”
With the completion of the refinancing, Krispy Kreme continues to expect between $39 and $43 million of interest expense, net, and to continue to de-lever its balance sheet in 2023 as part of its efforts toward its 2026 net leverage goal of 2x to 2.5x.
