Krispy Kreme

(KKD)

said Monday that it has arranged a crucial debt financing that relieves a pending cash crunch and should put near-term concerns about the company's liquidity position to bed.

The doughnut maker, whose rapid expansion and hamfisted treatment of franchise accounting have delayed the filing of financial statements, got a $75 million senior credit facility, a $120 million secured term loan and a $30 million prefunded revolving credit facility. CSFB was lead arranger and Silver Point Finance the co-arranger.

Money from the term loan was used to repay the company's outstanding $90 million credit facility, the indenture of which had been violated by the delayed financial statements. Krispy Kreme had twice negotiated deadline extensions under the old loan but had been living with the prospect of foreclosure for several months.

"This is an important, positive step for Krispy Kreme," the company said. "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."

The financing coup signals a key early victory for Stephen Cooper and Steve Panagos, the restructuring consultants who were installed as Krispy Kreme's CEO and president in January.

The shares rose 51 cents, or 6.8%, to $7.99 in Instinet premarket trading.