Tasty Baking Co., the maker of Tastykakes, says it has secured a new line of public and private financing that will give it some $6.5 million to stave off tight liquidity.
The company, based in Philadelphia, whose products include Kandy Kakes and Krimpets, said Friday that the new financing ranges from $2 million from the PIDC Local Development Corp., along with $1 million from the state's Department of Community and Economic Development. Another $3.5 million is coming from a group of investors.
Additionally, its banking group, led by Citizens Bank, agreed to defer payments and reductions in credit through June 30. The company is still looking at its next step, which could include a sale or merger or the further refinancing of long-term debt.
Tasty Baking Co. President and CEO Charlie Pizzi lauded the reprieve:
“Since our announcement last week, we have heard from countless fans, supporters and friends of the iconic Tastykake brand. We could not be more grateful and appreciative of their dedication and encouragement. Today’s news is a testament to their passion and loyalty to Tastykake.
While there are far too many people to adequately recognize for their incredible support, I would especially like to thank all of our employees and the Company’s independent sales distributors who have continued to provide our customers with the level of service and quality of product they have come to know and love. I would also like to give special recognition to Governor Ed Rendell, Mayor Michael Nutter, PIDC, the Machinery and Equipment Loan Fund of the Department of Community and Economic Development of Pennsylvania, and our bank group. This group has worked tirelessly with us over the past several weeks to help make today’s announcement possible.
As stated earlier, while we work diligently with our advisers on behalf of all stakeholders, and the Tastykake brand, for the best outcome possible, our Company will continue to operate its two modern bakeries and produce, distribute and sell Tastykake products to the delight of our customers and consumers.”