Industry News | January 30, 2001

CKE Extends Waivers of Covenant Compliance

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CKE Restaurants, Inc. (NYSE: CKR) announced today that the company has amended its senior credit facility effective January 29, 2001, including an extension of the waivers of non-compliance of certain of the financial covenants associated with this credit facility until April 30, 2001. The significant points of the amendment are as follows: • The company must meet certain benchmarks related to net proceeds from asset sales during the months of February 2001 ($10 million) and March 2001 (cumulatively $25 million). If the company fails to meet these benchmarks, the interest rate payable on the company's outstanding borrowings will increase until they are met. Such failure is not an event of default. • Although the company must still meet certain minimum EBITDA requirements, compliance with all other financial covenants has been waived until April 30, 2001. • Capital expenditures are limited during the first quarter of fiscal 2002. "This amendment and waiver are an important part of the continued success of our asset divestiture and refranchising program,'' said Andrew F. Puzder, CKE's president and chief executive officer. "It is an indication that our senior lenders continue to believe in and support our asset divestiture and refranchising program. We will use the next three months to continue our debt reduction program as we work towards a partial or complete refinancing of this credit facility as soon as reasonably practicable.'' CKE Restaurants, Inc., through its subsidiaries, franchisees and licensees, operates more than 3,800 quick-service restaurants, including 977 Carl's Jr. restaurants located in 13 Western states and Mexico; 2,727 Hardee's restaurants in 32 states and 11 foreign countries; and 125 Taco Bueno restaurants in Texas and Oklahoma.