By James McCandless
San Antonio, July 15 – FAT Brands Inc. provided more details on its new $9 million offering of $25-psr series B cumulative preferred stock with a dividend of 8.25%, according to a filing with the Securities and Exchange Commission.
There is a $1.35 million greenshoe.
Each share of the preferred stock will come with five common stock purchase warrants.
ThinkEquity is the bookrunner.
Dividends will be payable monthly starting on July 31, 2020.
The preferreds are redeemable at the company’s option at par with a redemption premium of 10% of $25.00, which will decrease by 2% per year until terminating on July 16, 2025.
FAT Brands plans to use the proceeds for general corporate purposes, possible future acquisitions and growth opportunities, the redemption of a portion of the outstanding series A preferred stock and payment of a portion of accrued dividends on the outstanding series A-1 preferred stock.
The company plans to list the preferreds on the Nasdaq under the symbol “FATBW.”
FAT Brands is a Beverly Hills, Calif.-based restaurant franchising company.
| Issuer: | Fat Brands Inc.
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| Description: | Series B cumulative preferred stock
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| Amount: | $9 million, or 360,000 shares
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| Greenshoe: | $1.35 million, or 54,000 shares
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| Maturity: | Perpetual
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| Bookrunners: | ThinkEquity
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| Dividend: | 8.25%
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| Price: | Par of $25.00
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| Yield: | 8.25%
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| Call: | At the company’s option at par with a redemption premium of 10% of $25.000, decreasing by 2% per year until terminated on July 16, 2025.
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| Pricing date: | July 13
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| Settlement date: | July 14
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| Distribution: | SEC registered
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| Listing: | Nasdaq: FATBW
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