WINSTON-SALEM, N.C. — The board of directors of Krispy Kreme Doughnuts, Inc. has approved the repurchase of up to $50 million of the company’s common stock, effective immediately. The company also announced it has refinanced its secured credit facilities and retired in full the $22 million outstanding balance of its term loan.

Krispy Kreme said the $50 million share repurchase program will be implemented through purchases made from time to time in either open market or private transactions, in accordance with Securities and Exchange Commission requirements. The company had approximately 66 million shares outstanding as of July 12.

Krispy Kremes’ shares opened at $20.35 on July 15, up from $20.10 at the end of trading on July 12 and more than double the share price of $9.60 on Jan. 2.

“Having completed a $20 million share repurchase program last year, we view this $50 million additional repurchase authorization as a further indication of Krispy Kreme’s financial strength, our outstanding free cash flow generation, and our positive outlook for the future,” said James H. Morgan, chairman, president and chief executive officer. “The substantial improvements we have made to operating results and the balance sheet over the past several years make us confident we have the capital resources to both implement and potentially expand the scope of our growth plans. While we will always seek to first deploy cash to grow the business, we will complement that usage, as appropriate, with other means of increasing shareholder value. The repurchase authorization announced today reflects our desire to further enhance shareholder returns when our cash flow generation is excess to our current needs and when doing so is in the best interests of our shareholders.”

Krispy Kreme previously forecast that it expects to generate adjusted net income of between $42 million and $45 million in the fiscal year ending Feb. 2, 2014. If realized, this would represent an increase of between 28% and 37% over the $32.9 million of adjusted net income earned on a 52-week basis in fiscal 2013. Cash provided by operating activities is forecast to be in the range of $63 million to $66 million. After deducting capital expenditures estimated to range from $23 million to $35 million, and $23 million of debt principal payments (including the retirement in full of the remaining $22 million balance of the company’s term loan), Krispy Kreme forecasts generating free cash flow in the range of $5 million to $20 million in fiscal 2014.

As of July 12, the company’s cash balance was approximately $55 million and unused borrowing capacity on its revolving credit facility was approximately $31 million. The amounts reflect the retirement of the $22 million remaining balance of the company’s term loan and the refinancing of its secured credit facilities.

On July 12, Krispy Kreme refinanced its secured credit facilities, including retiring in full the $22 million balance of its term loan and increasing the size of its revolving credit commitments to $40 million from $25 million.

The refinancing and the retirement of the term loan are expected to result in a decrease in interest expense of approximately $1 million in the first 12 months following the transaction, principally reflecting the elimination of interest on the term loan, lower costs for outstanding letters of credit, and elimination of the amortization of the cost of an interest rate hedge and the amortization of deferred financing costs related to the retired term loan, Krispy Kreme said.

Additionally, Krispy Kreme said it expects to record a non-cash charge resulting from the transaction of approximately $1 million in the second quarter, consisting principally of the write-off of the deferred financing costs related to the retired term loan and the termination of a related interest rate hedge.

As of July 12, 2013, there were no borrowings outstanding under the revolving facility; the only current utilization of such facility was to support outstanding undrawn letters of credit of approximately $9 million related to the company’s self-insurance programs.