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Krispy Kreme Announces Completion of Refinancing

WINSTON-SALEM, N.C., Feb 16, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD) announced today that it has closed a new senior secured credit facility aggregating $160 million, comprised of a $50 million revolving credit facility and a $110 million term loan. The revolving facility has a six year term ending in February 2013. The term loan amortizes in quarterly installments of $275,000 beginning in April 2007 with a final payment of the remaining term loan balance due in February 2014. The revolving credit facility provides that up to $30 million of this facility may be used by the Company to obtain letters of credit. The new facility may be retired without penalty at any time.

Proceeds of the term loan were used to repay the approximately $107 million outstanding balance under the Company's prior credit facility (which was retired), and to pay fees and expenses related to the new financing and the retirement of the prior facility. The Company will record a pretax charge of approximately $9.6 million in the quarter ending April 29, 2007, representing the prepayment fee related to the prior facility and the write- off of unamortized deferred financing costs related to the prior facility.

The new term loan bears interest at LIBOR plus 3.00% (subject to a stepdown based on credit ratings), compared to LIBOR plus 5.875% (and which had been LIBOR plus 7.25% from December 12, 2005 through January 28, 2007) under the retired term loan.

The new credit facility will be filed as an exhibit to a Current Report on Form 8-K, which will be made available on the Company's website promptly after its filing with the Securities and Exchange Commission. The facilities were arranged by Credit Suisse as sole bookrunner, sole lead arranger and administrative agent.

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