FAT Brands Inc. Announces Pricing of $350 Million Whole Business Securitization Transaction
July 01 2021 - 11:05AM
FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT), a leading
global franchising company and parent company of iconic brands
including Fatburger, Johnny Rockets, and seven other restaurant
concepts, today announced that it has priced an offering of
$350,000,000 principal amount of FGFG Series 2021-1 Fixed Rate
Asset-Backed Notes (the “Notes”). This transaction has been
structured as a whole business securitization transaction through
FAT Brands GFG Royalty I, LLC (“FAT GFG Royalty” or the “Issuer”).
The transaction is FAT Brands’ fourth successful securitization and
the largest to date. The proceeds from this transaction will be
used to finance the acquisition of Global Franchise Group from
Serruya Private Equity, Inc. and Lion Capital LLP in a transaction
announced on June 28, 2021. The notes were priced with a weighted
average fixed interest rate of 6.81% per annum.
Closing Date |
|
Class |
|
Seniority |
|
Principal Balance |
|
Coupon |
|
Weighted Average Life (Years) |
|
Non-Call Period (Months) |
|
Anticipated Call Date |
|
Final Legal Maturity Date |
7/22/21 |
|
A-2 |
|
Senior |
|
$ |
209,000,000 |
|
|
|
6.00 |
% |
|
|
2.01 |
|
|
|
6 |
|
|
7/25/2023 |
|
7/25/2051 |
7/22/21 |
|
B-2 |
|
Senior Subordinated |
|
$ |
84,000,000 |
|
|
|
7.00 |
% |
|
|
2.01 |
|
|
|
6 |
|
|
7/25/2023 |
|
7/25/2051 |
7/22/21 |
|
M-2 |
|
Subordinated |
|
$ |
57,000,000 |
|
|
|
9.50 |
% |
|
|
2.01 |
|
|
|
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 GFG Series 2021-1 whole business securitization. This
transaction represents our largest to date and was driven by very
strong investor demand for this issuance as well as great execution
by Jefferies as sole underwriter. This transaction enables FAT
Brands to complete the transformative acquisition of Global
Franchise Group.”
Wiederhorn continued, “This acquisition finance
issuance gives us ample time to implement our strategy of
incorporating the GFG brands into the FAT Brands portfolio and
reaching our projected combined EBITDA targets prior to refinancing
We continue to see 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 allows us to
have both a certainty of execution as well as the ability to move
quickly if and when the right acquisition opportunities present
themselves.”
Jefferies LLC acted as structuring agent and
sole bookrunner. Legal advisors to this transaction were Katten
Muchin Rosenman LLP for FAT Brands, 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 Inc. (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 nine restaurant brands:
Fatburger, Johnny Rockets, Buffalo’s Cafe, Buffalo’s Express,
Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean
and Ponderosa and Bonanza Steakhouses, and franchises approximately
700 units worldwide. For more information, please visit
www.fatbrands.com.
About Global Franchise Group, LLC
Global Franchise Group, LLC is a strategic brand
management company with a mission of championing franchise brands
and the people who build them. The company builds great brands that
connect people with craveable products and memorable experiences.
GFG currently supports more than 1,400 franchised and corporate
stores in 16 countries across five quick service restaurant
concepts: Round Table Pizza, Great American Cookies, Hot Dog on a
Stick, Marble Slab Creamery and Pretzelmaker. Global Franchise
Group, LLC is being acquired by FAT Brands from Serruya Private
Equity, Inc. and Lion Capital LLP.
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
FAT Brands Inc. (the “Company” or “our”) to complete the
acquisition of Global Franchise Group (“GFG”), the future financial
performance and growth of the Company following the acquisition of
GFG, and the Company’s ability to conduct future accretive and
successful acquisitions. Forward-looking statements generally use
words such as "expect," "foresee," "anticipate," "believe,"
"project," "should," "estimate," "will," "plans," "forecast," and
similar expressions, and reflect our expectations concerning the
future. It is possible that our future performance may differ
materially from current expectations expressed in these
forward-looking statements. Forward-looking statements are subject
to significant business, economic and competitive risks,
uncertainties and contingencies including, but not limited to, the
Company’s ability to successfully integrate and exploit the
synergies of the GFG acquisition, the Company’s ability to grow and
expand revenues and earnings following the acquisition, and
uncertainties surrounding the severity, duration and effects of the
COVID-19 pandemic. These risks, uncertainties and contingencies are
difficult to predict and beyond our control, and could cause our
actual results to differ materially from the results expressed or
implied in such forward-looking statements. We 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:
ICR
Ashley DeSimone
IR-FATBrands@icrinc.com
646-677-1827
Media Relations:
JConnelly
Erin Mandzik
emandzik@jconnelly.com
862-246-9911
###
FAT Brands (NASDAQ:FAT)
Historical Stock Chart
From Mar 2024 to Apr 2024
FAT Brands (NASDAQ:FAT)
Historical Stock Chart
From Apr 2023 to Apr 2024