$50MM: Units of 100 shares of Series A Fixed Rate/Floating Cumulative Preferred & 185 Warrants to purchase shares at $18.00/sh
Anticipated Annualized 13.6% Yield for Accredited Investors**
FAT Brands is seeking to raise up to $50 million in a Unit
Offering. This is a 506(c) Private Placement of up to 5,000 Units, each unit
consisting of (i) 100 shares of Series A Fixed Rate/Floating Rate Cumulative
Preferred Stock and (ii) Warrants to purchase 185 shares of Common Stock at
$18.00 per share.
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.
As a franchisor, FAT Brands generally does not own or operate restaurant locations and generates revenue by collecting initial franchise fees as well as ongoing royalties from its franchisees. This franchisor model drives strong profit margins and an attractive free cash flow profile while minimizing restaurant operating company risk, such as long-term real estate commitments or capital investments. FAT Brands scalable management platform enables them to add new stores and restaurant concepts to their portfolio with minimal incremental corporate overhead cost, while taking advantage of significant overhead synergies. The acquisition of additional brands and restaurant concepts is a key element of their growth strategy.