Krispy Kreme Doughnuts Inc. said Tuesday it requested its lenders approve amendments to the doughnut chain's secured credit facilities to relax the covenants that become more stringent this year.
Krispy Kreme said it was in compliance with the financial covenants in its credit facilities as of Feb. 3, which marks the end of the company's 2008 fiscal year.
The company said it believes it will be able to get the amendments, but doesn't have any assurances yet that its lenders will agree to them.
In connection with any amendment, Krispy Kreme said the cost of the credit extended to the company would increase.
The company did not give any details about the amendments it is seeking.
As of Feb. 3, the outstanding balance of the term loan under the credit facilities was $76.1 million and outstanding letters of credit under the facilities were $20.3 million, the company said.
Krispy Kreme shares fell 17 cents, or 5.2 percent, to $3.13 in electronic after-hours trading. During regular trading, shares rose 25 cents, or 8.2 percent, to close at $3.30. The stock has traded in a 52-week range of $2.23 to $11.49.
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