Krystal Swaps Bonds For Bank Debt
Proceeds from fast food chain The Krystal Co.'s new $90 million credit facility were used to take out the company's $60.9 million 10 1/4% senior notes due 2007.
The facility has matrix pricing based on covenants, but Bentley declined to disclose the spread. "The interest rates were right, [the] bank market was right and we were able to get a senior bank deal done at what we through were favorable terms," Bentley noted, on the timing of the deal. Bank of America leads the facility. "We went through a competitive bidding process and they came to the table with the most attractive package," Bentley said. He declined to name the other bidders. B of A also led the company's previous revolver.