FAT Brands Inc. Announces $16 Million Debt Financing with FB Lending, LLC
July 05 2018 - 8:00AM
Business Wire
FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT
Brands” or the “Company”), a leading global restaurant franchising
company, today announced that it has entered into a $16 million
senior credit facility. The Company will use a portion of the loan
proceeds to complete its previously announced acquisition of
Hurricane Grill & Wings (“Hurricane”), with the remaining
proceeds to be used to repay existing indebtedness and for future
acquisitions.
“This financing enables the completion of our acquisition of
Hurricane, while strengthening our balance sheet and providing the
capacity to pursue additional accretive acquisitions. As we
continue to execute our asset-light growth strategy, we are pleased
to partner with the FB Lending, LLC team, who, through their
affiliate companies, have a long and successful track record of
investing in credit,” said Andy Wiederhorn, President and Chief
Executive Officer of FAT Brands.
The financing consists of a $16 million term loan with a 15%
coupon and a maturity date of June 30, 2020. Additionally, FB
Lending, LLC will receive five year warrants to purchase 499,000
shares of common stock, with a strike price of $7.35. In
conjunction with the financing, Fog Cutter Capital Group Inc.
(“FCCG”), FAT Brands’ parent company, converted the remaining
outstanding indebtedness due FCCG from FAT to common equity at
$7.35/share.
TriPoint Global Equities, LLC, working with R.W.
Pressprich & Co., acted as the selling agents for the
Offering.
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 five restaurant brands, Fatburger, Buffalo’s Cafe,
Buffalo’s Express and Ponderosa & Bonanza Steakhouses, that
have approximately 300 locations open and 300 under development in
32 countries. For more information, please visit
www.fatbrands.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 timing and ability of
the Company to consummate additional closings of Preferred Shares
and Warrants, its ability to negotiate and complete other debt and
equity financing transactions, its future growth, and its ability
to pay dividends to investors. Forward-looking statements generally
use words such as "expect," "foresee," "anticipate," "believe,"
"project," "should," "estimate," "will," "plans," "forecast," and
similar expressions, and reflect the Company’s expectations
concerning the future. It is possible that the Company’s future
results may differ materially from its current expectations or
those expressed or implied in these forward-looking statements. We
refer you to the documents that we file from time to time with the
Securities and Exchange Commission, including our reports on Form
10-K, Form 10-Q and Form 8-K, for a discussion of the risks and
uncertainties that could cause our actual results to differ
materially from our current expectations or forward-looking
statements contained in this press release. We undertake no
obligation to update any forward-looking statement to reflect
events or circumstances occurring after the date of this press
release.
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version on businesswire.com: https://www.businesswire.com/news/home/20180705005095/en/
Investor Relations:ICRAlexis Tessier,
203-682-8286IR-FATBrands@icrinc.comorMedia Relations:Konnect
AgencyShelby Robinson/Rebecca
Campbell213-988-8344srobinson@konnectagency.comrcampbell@konnectagency.com
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