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. Krystal previously only had a revolver, but has now added term debt. The new deal comprises a $40 million "A" loan, $25 million "B" loan and $25 million revolver. "It gives us a lot more flexibility. Much more flexibility than we had with just senior notes in terms of the ability to make investments in other businesses and also creates a much more efficient mechanism for reducing debt going forward," said
, Krystal's senior v.p. and cfo.
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.