FAT Brands entered into a $16 million senior credit facility with FB Lending. The company will use the proceeds to complete its acquisition of Hurricane Grill & Wings, to repay existing indebtedness and to set aside funds for future acquisitions.
The financing consists of a $16 million term loan with a 15% coupon and a maturity date of June 30, 2020. FB Lending will also receive five year warrants to purchase 499,000 shares of common stock, with a strike price of $7.35. In conjunction with the financing, FAT Brands’ parent company, Fog Cutter Capital Group, converted FAT’s remaining outstanding indebtedness due the group to common equity at $7.35 per share.
“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 team, who, through their affiliate companies, have a long and successful track record of investing in credit,” said Andy Wiederhorn, president and CEO of FAT Brands.
TriPoint Global Equities, working with R.W. Pressprich, acted as selling agents on the offering.
FAT Brands is a global franchising company which acquires, markets and develops fast casual and casual dining restaurants. The company currently owns five restaurant brands: Fatburger, Buffalo’s Cafe, Buffalo’s Express and Ponderosa & Bonanza Steakhouses.
