News

FAT Brands completes $40M whole business securitization

March 9, 2020

FAT Brands Inc., the parent company of Fatburger, has completed a $40 million whole business securitization, a move that will significantly lower the company's cost of capital. 

The offering included $40 million in Series 2020-1 Fixed Rate Asset-Backed Notes that were structured through the creation of FAT Brands Royalty I. 

"We are happy to announce the completion of our whole business securitization transaction, which demonstrates the confidence that the institutional investor community has in our platform," Andy Wiederhorn, president and CEO of FAT Brands said, in a company release. 

He said the transaction will significantly lower FAT Brands' marginal cost of capital to 7.75%, its weighted average cost of capital to 8.49% and would lower its net interest expense by almost $2 million per year. He added that the transaction would include an accordion feature, which will support its acquisition growth strategy.

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