CKE Restaurants, Inc. Reports Amendment to Credit Facility And Extension of Waivers of Covenant Compliance

Apr 18, 2001, 01:00 ET from CKE Restaurants, Inc.

    ANAHEIM, Calif., April 18 /PRNewswire/ -- CKE Restaurants, Inc.
 (NYSE:   CKR) announced today that it has amended its senior credit facility
 effective April 13, 2001.  The amendment, among other things, includes an
 extension of the waivers of non-compliance with certain of the financial
 covenants associated with this credit facility through January 31, 2002.
     Other significant points of the amendment are as follows:
 
     -- The maturity has been shortened to February 1, 2002.
     -- Interest rates will increase on July 1, 2001 and October 1, 2001,
        depending on certain repayment thresholds.  If such thresholds are not
        met, it will not constitute an event of default.
     -- The Company must still meet certain minimum EBITDA requirements,
        although compliance with all other financial covenants has been waived
        through January 31, 2002.
     -- Capital expenditures are limited to $55 million for the fiscal year
        2002 and may not exceed $20 million in any one quarter.
 
     Andrew F. Puzder, CKE's president and chief executive officer said, "This
 amendment and waiver is important to our debt reduction program as we work
 toward complete refinancing of this credit facility as soon as reasonably
 practicable."
     CKE Restaurants, Inc., through its subsidiaries, franchisees and
 licensees, operates more than 3,700 quick-service restaurants, including 980
 Carl's Jr. restaurants located in 13 Western states and Mexico; 2,657 Hardee's
 restaurants in 32 states and 11 foreign countries; and 125 Taco Bueno
 restaurants in Texas and Oklahoma.
 
     Statements that are not historical facts contained in the release are
 forward-looking statements that involve risks and uncertainties, and actual
 results could vary materially from the descriptions contained herein due to
 many factors, including, but not limited to, product demand and market
 acceptance risks; the effect of economic conditions; the impact of competitive
 products and pricing; the results of financing efforts; the effect of the
 Company's accounting policies and other risks detailed in the Company's
 filings with the Securities and Exchange Commission.
 
 

SOURCE CKE Restaurants, Inc.
    ANAHEIM, Calif., April 18 /PRNewswire/ -- CKE Restaurants, Inc.
 (NYSE:   CKR) announced today that it has amended its senior credit facility
 effective April 13, 2001.  The amendment, among other things, includes an
 extension of the waivers of non-compliance with certain of the financial
 covenants associated with this credit facility through January 31, 2002.
     Other significant points of the amendment are as follows:
 
     -- The maturity has been shortened to February 1, 2002.
     -- Interest rates will increase on July 1, 2001 and October 1, 2001,
        depending on certain repayment thresholds.  If such thresholds are not
        met, it will not constitute an event of default.
     -- The Company must still meet certain minimum EBITDA requirements,
        although compliance with all other financial covenants has been waived
        through January 31, 2002.
     -- Capital expenditures are limited to $55 million for the fiscal year
        2002 and may not exceed $20 million in any one quarter.
 
     Andrew F. Puzder, CKE's president and chief executive officer said, "This
 amendment and waiver is important to our debt reduction program as we work
 toward complete refinancing of this credit facility as soon as reasonably
 practicable."
     CKE Restaurants, Inc., through its subsidiaries, franchisees and
 licensees, operates more than 3,700 quick-service restaurants, including 980
 Carl's Jr. restaurants located in 13 Western states and Mexico; 2,657 Hardee's
 restaurants in 32 states and 11 foreign countries; and 125 Taco Bueno
 restaurants in Texas and Oklahoma.
 
     Statements that are not historical facts contained in the release are
 forward-looking statements that involve risks and uncertainties, and actual
 results could vary materially from the descriptions contained herein due to
 many factors, including, but not limited to, product demand and market
 acceptance risks; the effect of economic conditions; the impact of competitive
 products and pricing; the results of financing efforts; the effect of the
 Company's accounting policies and other risks detailed in the Company's
 filings with the Securities and Exchange Commission.
 
 SOURCE  CKE Restaurants, Inc.