Credit Suisse First Boston provided the doughnutretailer with a $225 million loan including a $75million first lien senior secured revolving creditfacility, a $120 million second lien senior securedterm loan and a $30 million second lien prefundedrevolving credit and letter of credit facility.

The doughnut maker's failure to file its financialstatements for portions of 2004 put it in danger ofdefault, and industry experts had speculated thatKrispy Kreme would be forced into bankruptcy if itdidn't find another source of capital. According toSteve Panagos, Krispy Kreme president & COO, theadditional liquidity and lack of near-term repaymentdeadlines will allow the company to focus on its corebusiness.

Proceeds from the new loan were used to repay the $90million outstanding under the company's existingcredit facility, pay fees and expenses related to the financing, and provide cash on the balance sheet. The first lien facility and the second lien revolving credit and letter of credit will be available to Krispy Kreme for general corporate purposes.