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Krispy Kreme OKs $50 million share buyback

NEW YORK (AP) -- Krispy Kreme Doughnuts Inc. said Monday its board approved $50 million in stock buybacks and increased its credit line.

The company, based in Winston-Salem, N.C., said it increased the size of its revolving credit commitments to $40 million, from $25 million. It refinanced its secured credit facilities and retired the $22 million outstanding balance on its term loan.

Krispy Kreme expects to record a non-cash charge of about $1 million in the second quarter as a result of the transactions. The refinancing and retirement of debt should lower interest expenses by about $1 million in the first year after the transaction, the company said.

The company also repeated a prior forecast, saying it expects to post adjusted net income between $42 million and $45 million for the fiscal year ending in February. Analysts, on average, were expecting adjusted profit of $38.5 million, according to FactSet, with estimates ranging from $26.9 million to $46.2 million.

Krispy Kreme has 770 stores in 22 countries. As of Friday, it had 66 million shares outstanding.

Shares closed Friday at $20.10, and have more than doubled since the start of the year.