Twin Hospitality Group, the operating unit for FAT (Fresh. Authentic. Tasty.) Brands’, a global franchising company and parent company of 18 iconic brands, Twin Peaks and Smokey Bones restaurant brands, has priced the issuance of new notes to refinance its whole business securitization credit facility originated in October 2021. The aggregate principal balance of the new Series 2024-1 fixed rate notes is $416,711,000 across four tranches, with a weighted average interest rate of 9.5% per annum. The issuer of the notes will be Twin Hospitality I, a wholly-owned subsidiary of Twin Hospitality Group._x000D_
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The notes may be exchanged for a proportionate interest in exchangeable notes in two tranches, referred to as Class A2IIB2 (up to $326,876,000) and Class A2IIB2M2 (up to $404,587,000), which reflect in the aggregate the characteristics of the corresponding exchanged Notes._x000D_
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“We are pleased to announce the successful pricing of the TWNP Series 2024-1 whole business securitization notes,” Ken Kuick, co-CEO of FAT Brands, said. “This financing stabilizes Twin Peaks’ financial structure and represents a key milestone as we work toward the goal of creating a standalone public company.”_x000D_
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“Additionally, the refinancing allows us to further drive the growth of Twin Peaks, our fastest-growing concept. Twin Peaks’ compelling unit economics continue to fuel strong demand from both existing and potential franchisees seeking new locations,” Kuick said. “Year to date, we have opened nine new lodges bringing our total to 115 Twin Peaks locations.”_x000D_
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Jefferies acted as sole structuring agent and sole bookrunner for this transaction. Legal advisors were Katten Muchin Rosenman for FAT Brands, and King & Spalding for Jefferies.
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