FAT Brands Inc. Announces Pricing of $250 Million Whole Business Securitization Transaction
September 15 2021 - 5:00AM
FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT), a leading
global franchising company and parent company of iconic restaurant
brands including Fatburger, Johnny Rockets, Round Table Pizza and
eleven other concepts, today announced that it has priced an
offering of $250,000,000 of its FATTP Series 2021-1 Fixed Rate
Asset-Backed Notes (the “Notes”). This transaction has been
structured as a whole business securitization through FAT Brands
Twin Peaks Royalty I, LLC and is FAT Brands’ fifth securitization
transaction. The net proceeds from the sale of the Notes will be
used to partially finance the acquisition of Twin Peaks restaurant
chain from Garnett Station Partners, and the Notes will be secured
by the acquired assets. The Notes were priced with a weighted
average fixed interest rate of 8.00% per annum.
Closing Date |
Class |
Seniority |
Principal Balance |
Coupon |
Weighted Average Life (Years) |
Non-Call Period (Months) |
Anticipated Call Date |
Final Legal Maturity Date |
10/1/2021 |
A-2 |
Senior |
$ |
150,000,000 |
7.00 |
% |
1.82 |
6 |
7/25/2023 |
7/25/2051 |
10/1/2021 |
B-2 |
Senior Subordinated |
$ |
50,000,000 |
9.00 |
% |
1.82 |
6 |
7/25/2023 |
7/25/2051 |
10/1/2021 |
M-2 |
Subordinated |
$ |
50,000,000 |
10.00 |
% |
1.82 |
6 |
7/25/2023 |
7/25/2051 |
Andy Wiederhorn, President and CEO of FAT
Brands, commented, “We are very proud to announce the pricing of
the FAT Twin Peaks Series 2021-1 whole business securitization.
This transaction represents our fourth securitization in the last
12 months and was driven by strong investor demand for this
issuance as well as great execution under tight timelines by
Jefferies. This financing enables FAT Brands to complete the
acquisition of Twin Peaks and formally enter the polished-casual
dining vertical.”
Wiederhorn continued, “This issuance gives us
ample time to implement our strategy of increasing the number of
franchised locations of this extremely successful concept prior to
refinancing. The award-winning Twin Peaks restaurants have very
attractive unit economics and there is strong demand from current
and potential franchisees for new locations. Given our purchasing
power of over 2,100 restaurants, existing franchisee network, and
proven track record of acquisition integration, we look forward to
implementing our global growth and expansion plans for this brand.
We also continue to see attractive opportunities to acquire new
brands while maintaining our asset-light business model as the US
and the rest of the world emerge from the pandemic. Utilizing our
securitization facilities in combination with our public equities
provides us with greater control over execution and the ability to
move quickly if and when the right acquisition opportunities
present themselves.”
Jefferies LLC acted as structuring agent and
sole bookrunner for this transaction. Legal advisors were Katten
Muchin Rosenman LLP for FAT Brands Inc., and DLA Piper LLP for
Jefferies LLC.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy the Notes or any
other security. The Notes have not been, and will not be,
registered under the Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable
exemption from the registration requirements of the Securities Act
of 1933.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global
franchising company that strategically acquires, markets and
develops fast casual and casual dining restaurant concepts around
the world. The Company currently owns 14 restaurant brands: Round
Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Great
American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express,
Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Yalla
Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises
over 2,000 units worldwide. For more information on FAT Brands,
please visit www.fatbrands.com.
About Twin Peaks
Founded in 2005 in the Dallas suburb of
Lewisville, Twin Peaks now has 82 locations in 25 states. Twin
Peaks is the ultimate sports lodge featuring made-from-scratch food
and the coldest beer in the business surrounded by scenic views and
the latest in high-definition TVs. At every Twin Peaks, guests are
immediately welcomed by a Twin Peaks team member and served up a
menu made for MVPs. From its smashed and seared to order burgers to
in-house smoked ribs and hand-breaded wings, guests can expect menu
items capable of satisfying every appetite. To learn more about
franchise opportunities, visit www.twinpeaksfranchise.com. For more
information, visit www.twinpeaksrestaurant.com.
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements relating to the ability of
the FAT Brands Inc. (the “Company”) to complete and integrate the
acquisition of Twin Peaks and increase the number of store
locations, the future financial performance and growth of the
Company following the acquisition of Twin Peaks, and the Company’s
ability to conduct future accretive and successful acquisitions.
Forward-looking statements reflect the Company’s expectations
concerning the future and are subject to significant business,
economic and competitive risks, uncertainties and contingencies,
including, but not limited to, those surrounding the Company’s
ability to successfully integrate and exploit the synergies of the
acquisition of Twin Peaks, the Company’s ability to grow and expand
revenues and earnings following the acquisition, and the severity,
duration and effects of the COVID-19 pandemic, many of which are
difficult to predict and beyond our control and could cause our
actual results to differ materially from those expressed or implied
in such forward-looking statements. We also refer you to the
documents we file from time to time with the Securities and
Exchange Commission, such as our reports on Form 10-K, Form 10-Q
and Form 8-K, for a discussion of these and other risks,
uncertainties and contingencies. We undertake no obligation to
update any forward-looking statement to reflect events or
circumstances occurring after the date of this press release.
Investor Relations:
ICRLynne CollierIR-FATBrands@icrinc.com646-430-2216
Media Relations:
JConnellyErin Mandzikemandzik@jconnelly.com862-246-9911
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